A highly compensated individual decides to stop killing himself because he's hit the $250 mark, kicks back and actually has an incentive to relax a bit. I don't want him flying anyway.
The airline will have to pick up some more pilots to compensate, or they'll have to drop flights, which might be a reasonable decision.
Other than the fact an unsafe unhappy pilot who makes more money than 9x% (not looking it up) is forced to relax, I don't see a downside.
I seem to recall a study that the magic number is $70,000. People get happier and happier up to $70K, ie: it is relative to the number and/or what it can buy for them. After $70K, the happiness level does not increase, at least in any close relation to the amount of money.
As far as I'm concern, they should cap them at $140K, cut their hours, and tell them to kick back. Hire more pilots and fund a training program.
Pilots are union. At least, mostly. That makes them interchangeable, and overpaid for the skillset. At least mostly. Not by much, mind you. They make critical life changing decisions all the time, for other people, unlike most of us. But $140K is not small, and almost everything they deal with is predetermined. Yes, their expertise is REQUIRED at certain times, but not usually. So give them less responsibilities, let them relax, and get more of them.