As long as CXO takes real responsibility by cutting their salary to a significant percentage and refusing stock refreshers (or whatever called) I'm fine. By saying "I take full responsibility" but still maintains the original pay is not convincing. Since tech CXOs usually take very large stock and cash compensations (well into multi-millions), just imagine how much cost can be saved by cutting all CXO compensation by 50%.

The company can also initiate a vote of all employees to remove this cut of CXO compensations, so that if CXO is really doing well overall I'm sure he will be recognized and his compensation defended by the whole company.