This breakdown of Larry Summers' pay last year goes some way to explaining why. The market decides.
With the hedge fund collapes I suspect this amount will be lower this year.
Financial Industry Paid Millions to Obama Aide [New York Times]
WASHINGTON — Lawrence H. Summers, the top economic adviser to President Obama, earned more than $5 million last year from the hedge fund D. E. Shaw and collected $2.7 million in speaking fees from Wall Street companies that received government bailout money, the White House disclosed Friday in releasing financial information about top officials.