CEO can't really improve a company that much. (CEOs typically don't have any part in the actual production. And very small part in sales.) But CEO can fuck up b

CEO can't really improve a company that much. (CEOs typically don't have any part in the actual production. And very small part in sales.) But CEO can fuck up big time. If you would hire CEO with low pay, you have to choose inexperienced CEO. So you have no track record. And the chance that you have fuck-up is relatively high. CEO's are paid a lot to "guarantee" that they are not idiots. Because accidentally hiring an idiot would be absolutely devastating. In other words: The CEO holds the company as a hostage, and you pay him to remain insignificant.