Are you kidding? Most people make $50k not $500k. Lots of existing CEO's don't even make $500k.
So long as it doesn’t become a revolving door project with workers influenced by private companies by promises of future employment, then I think the whole practice is fine.
So the job of running a $10 billion dollar per year company that manages nuclear power plants, hydroelectric dams, and supplies power to millions of people is done by someone who hasn't yet proven they likely have the capability to do so?
This isn't a summer internship at the State Department.