You have a point, but I would argue that senior leadership is composed of a group of people rather than one man.  The CEO receives advice and insight from his team and makes decisions based on that.  

My own feeling is the quality of that team is perhaps more important than the titular head.  His or her role is to project strong leadership, forge partnerships, and bring in business.  It is a highly political role, which is why I call it a figurehead.

I do not say figureheads are unimportant -- it is critical to have a place where the buck stops -- .but I do believe they are overcompensated.