I gather that the idea is that stock prices a manipulated to follow a sawtooth pattern -- plummeting with the big bath of the new CEO and rising during the CEO'

I gather that the idea is that stock prices a manipulated to follow a sawtooth pattern -- plummeting with the big bath of the new CEO and rising during the CEO's tenure. I haven't seen the evidence that this is so, but it would explain why CEO compensation exceeds returns on investment.