I'm afraid I can't agree with this either. There are tons of jobs, including software development, that put this sort of strain on a person but don't compensate

I'm afraid I can't agree with this either. There are tons of jobs, including software development, that put this sort of strain on a person but don't compensate like a CEO. My wife is a registered nurse, and that's another job in the same class. I agree that CEO pay is tied to risk, but I think it's the other way around: boards and exec. search committees are willing to pay perceived superstars huge amounts to mitigate the risk of having picked the wrong person. If the stock price goes up or down a little bit as a result of the choice billions can be on the line.