Let's be careful of the comparisons we make here.
First, we should all be able to agree that people in the Armed Forces (AF from here out) are underpaid to an extent.
Back to the comparison ...The pay scale for a comparable position in the private industry is higher, but the private sector (PS from here out) almost always requires out of pocket contributions to both health care (medical/dental) and retirement (pension/401k), where in the AF, the only contribution (save co-pays) would be for a 401k (not sure on this point, but it's likely most military personel have no service direct/run 401k program). Also, the PS doesn't get sustenance (food) or housing assistance (generally). The PS on the other hand doesn't have any "job" security, the AF does (save budget cuts). The PS also doesn't have (again generally) the "re-up" bonuses. The PS though does have the ability to take their skills/assest and go elsewhere if they "feel" they aren't being appropriately compensated, in the AF, you can't do that.
Now, for "upper management" comparisons. According to finance.yahoo.com the Chairman of the corporation I work for makes $815k (I'm sure this is base, not including bonuses or stock options). He's a son of the founder of Luxottica an Italian based company that grew from an individual repaing and hand making frames 1961 to the multi-billion dollar entity it is today (see below) and is only earning this due to the sucess of the business. In the AF, I'm sure there are some instances of "upper ranks" getting moved out, but weak profits won't get you fired. Though on the other side of this, in the PS there are performance based incentives.
Luxottica has been listed on the NYSE since January 23, 1990 (stock symbol: LUX)Luxottica has been listed on the MTA since December 4, 2000 (stock symbol: LUX)Total float: 25.4%
Total Sales: 2.824,6 million Euros in the year 2003.Net profit: 267,3 million Euros in the year 2003.
Manufacturing plants in Italy: Agordo (Belluno) - Cencenighe (Belluno) - Gazzada (Varese) Lauriano (Turin) - Pederobba (Treviso) - Rovereto (Trento) - Sedico (Belluno)
Owned brands: Arnette, Killer Loop, Luxottica, Persol, Ray-Ban, Revo, Sferoflex, Vogue.Licensed brands: Anne Klein, Brooks Brothers, Bulgari, Byblos, Chanel, Emanuel Ungaro, Genny,Jil Sander, Miu Miu, Moschino, Prada, Salvatore Ferragamo, Sergio Tacchini, Versace, Versus.
Wholesale distribution: Luxottica distributes its own products in 120 countries around the world, through 28 wholly-owned branches, over 1,100 sales agents and approximately 100 independent distributors.Retail distribution: Luxottica Group is the leading optical retailer in the U.S. and Canada with more than 2,500 Lenscrafters and Sunglass Hut International stores, and in Australia with over 630 stores through the acquisition of OPSM Group in 2003. And adding Cole National (Pearle, Things Remebered) as soon as FTC approval is recieved.
OKAY AT THIS POINT I'M RAMBLING, sorry

. But the point should be AF's are under paid, but the comparisons aren't as easy as base pay to base pay.