The claim was not that they can't reduce but that an 80% discount was too much to ask of people (and thus also their families). I don't think anyone at any pay level would be happy being paid 20% of similar roles. Perhaps the problem was putting people in these roles in the first place that would accept 20% of market rate. Raising their pay subsequently doesn't make them better at their job!

The quote is not really crazy:

"Executive compensation is a general topic -- are execs, esp CEOs paid too much? I'm of the camp that thinks the different between exec comp and other comp is high. So then i think, OK what should mozilla do about it? My answer is that we try to mitigate this, but we won't solve this general social problem on our own. Here's what I mean by mitigate: we ask our executives to accept a discount from the market-based pay they could get elsewhere. But we don't ask for an 75-80% discount. I use that number because a few years ago when the then-ceo had our compensation structure examined, I learned that my pay was about an 80% discount to market. Meaning that competitive roles elsewhere were paying about 5 times as much. That's too big a discount to ask people and their families to commit to."

https://answers.thenextweb.com/s/mitchell-baker-aGY62z?comme...