Because of this article - http://www.huffingtonpost.com/2009/12/07/aig-executives-threaten-t_n_382853.html

It's only punishment if you consider the original payment plan to be normal. Otherwise, it's just resetting the pay scale back to societal norms.

How about this analogy - your parents give you a car for your 16th birthday. For your 17th they give you an iPod. Are they punishing you? And how would you feel if your parents were only able to afford your iPod by borrowing money from your rich Uncle?