Lets assume that CEO can fuck up so bad that it will bancrupt a company.<p>Star CEO has 0,1% chance of fuck up&#x2F;year.
Good CEO has 0,2% chance.
And completely mediocre would be about 0,4%.<p>Hire three mediocre dudes to CEO the company so that they are always deciding on everything together. You have now 0,064% yearly chance of bancrupty, while you can easily pay them just 300k each.<p>It seems like high CEO pay is often a result of CEO holding the company as hostage. Not not necessarily conciously, but from shareowners point of view. Distribute the risk of bad moves and you should get OK performance cheaply.