The site bases the figure on Santa's work as "an industrial engineer managing the North Pole toy factory." It's not just a clever holiday gag: Insure tracks unpaid work done by family members as one of the actuarial metrics it uses to determine whether people who don't work outside the home have adequate life insurance.
So even though Santa's total comp package as a CEO doesn't seem high compared to a lot of U.S. industry chiefs, his job does have its share of perks (or hardships, depending on your view). There's that far-away North Pole location 12 months/year, which may red-suit those who enjoy working remotely and don't mind harsh winters.
Santa also gets to interact big-time with kids in November and December (which may explain why he has none of his own) and spends more than 2,900 hours per year supervising elf workshop operations – which Insure estimates at $116,000 of his total pay. Then there are all those free cookies and milk servings on Christmas Eve, and no need for a 401(k) or retirement planning deductions: he's got the job for life.
Still, almost one third of households canvassed by the site feel St. Nick is worth much more on paper, while another third thinks he should work pro bono (doesn't he already?).