Aside from the temptation to say that "compensated" is a tonier word than "paid", which is for hoi polloi, I actually think that it's partly a tax thing and partly due to the fact that whereas your grunts on the assembly line generally get a salary and nothing else, executives receive extras besides their salaries, such as bonuses and stock options, besides perks (short for perquisites) such as club memberships, company car or chauffeur, etc., all of which comprises their compensation.