Not only should executive pay be capped on government owned companies, I believe there should be a cap on executive pay for all public held companies. There is no reason for a CEO to be paid $150M per year. Stock options are a different story. If the value of the company goes up, sure give him options to exercise at 100% of lowest in prior 12 months.
If the company is not publicly held, leave them alone...but as soon as they go public, put a limit of 1000 times the lowest full time employee's compensation.