I think that one key aspect of your comment is that you're taking about a 10x. Which can be generalized into a question: should a solution be rejected if it leaves a well-off minority less well-off than they are now, regardless of how much good it may do otherwise?
I, personally, think the answer to that general question is no. That answer may be hard to swallow if you're part of that well-off minority, but I don't think that changes the truth of the matter.
However, that doesn't mean that a union would or should force that guy to take a pay cut.
> I feel people will always want more money for performing better, or get incentivised to perform at the exact right level of that compensation and not more. I am curious what other people think on this.
I feel that people will always want more money regardless. I also feel that compensation is actually a poor motivator for performance. I think the real motivators for performance are internal factors (such as a desire to improve oneself, to avoid annoyance with badly made things, or to be challenged rather than bored).
Personally, I think once you make enough money, the extra compensation is more a form of recognition than anything else. Recognition doesn't have to be in the form of money, it's just that a souless corporation only cares about money, so money is the only way you can extract recognition from it.
And you are right, compensation is definitely a form of recognition, and perhaps there are better ways to do it. Just not sure how you bestow that recognition in some reasonable way. So what other form of recognition conveys your actual value to a company? What else can be done here?
One thing people would probably stop doing is chasing wealth and career to the detriment of their private life, and that might be a net negative to corporate spreadsheets and economic growth, but probably a net-positive for society.
I say to both my leftist and rightist friends to please spend some time analyzing Scandinavian societies. They are much more advanced than us on a lot of social issues, and a lot of their successes are directly applicable to our societies, too.