If you short the most expensive CEOs, you will do very well. I have been doing this for a long time. Weak CEOs are a prime source of alpha because the irrationa

If you short the most expensive CEOs, you will do very well. I have been doing this for a long time. Weak CEOs are a prime source of alpha because the irrational behaviour that leads to them becoming CEOs (like thinking you need to pay 2x to get 2x output) is structual. Also, your view is based on one of the great lies that CEOs tell shareholders. CEOs do better when they are fully invested, and (the argument goes) big pay aligns incentives. It doesn't. Most CEOs cash out their options, buy a McMansion, and waste all their money. If you want to do well: you buy businesses that don't rely on CEO skill (if you rely on a skilled CEO, you are done for...you aren't getting one), and you align incentives (i.e. no option cashing, the CEO has 99% of their wealth invested permanently).