Bates said:
A team with a player in the press box has left open the choice of using that player again.
I'm pretty sure teams have that option with executives too. If the Leafs went to Nonis right now and said "Just kidding, we do want you to be GM" I'm pretty sure that if he wanted to keep getting paid he'd have to come in to work. I don't know how it might work if, say, the Leafs decided they wanted to employ Nonis in a different capacity(if, say, they wanted to demote him) but I think there's not much practical difference there.
Bates said:
Most NHL teams are barely making money. Someone rescuing them for contracts with both term and money left really should not be also paying compensation. As a side note it will have some really bad optics to NHLPA in next negotiation if teams would rather continue paying fired execs rather than let them walk away. To me it's just silly to expect something in return for someone you felt your team was better off without and have actually fired them. That's not even close to benching or putting on trade block.
Again, I'm not disagreeing with you from the perspective of what "should be" just that I'd guess that the league knew all of what you say here when they passed it and still wanted to pass it. Again, I'd think of it like you might a contract with a non-compete clause. You're paying someone that money not just so they'll help your team but also so they don't help another team. Being as these NHL teams are, in theory, in direct competition with each other it
does make a certain amount of sense.
My guess is that the market will sort this out. I'd bet that eventually teams will realize that the difference between their #1 and #2 choices aren't worth a high round pick and as a result, will simply move on from executives where compensation is being demanded.