The problem is that in the current era, we only look at short term profits and losses, which makes it difficult to evaluate competency. The comparison of CEO v

The problem is that in the current era, we only look at short term profits and losses, which makes it difficult to evaluate competency. The comparison of CEO vs Owner/Founder/Guy with the name on the company, should be looked from the short/long term benefits to the company. A lot of CEOs are compensated based on stock value and quarterly results, which can be gamed quite easily. You can improve profit margins if you fire half your staff, but will that ensure your company lasts a decade? Probably not. Once you take a long term view, you can align the incentives that way, and automatically ensure the CEOs have more skin in the game. E.g. instead of $3M joining bonus, move it to a bonus if you’re still a CEO after 3 years.