As someone that puts thermal compound on CPUs on a weekly basis while testing CPU coolers, that is maybe a little more than I would use...probably 50%-60% of that is enough.
Of course, when the cooler is mounted and properly secured, the excess paste should be pushed out the sides and will just sit on the flip up mounting bracket. If the thermal paste is conductive and this seeps out onto the motherboard, you of course have shorting issues to contend with.