[lordnacho]

That's right. People also seem to come up with the point that the manager can make a huge difference to the company, but they forget that can also mean a huge negative difference. Ordinary employees tend not to be able to destroy a company on their own.

[slededit]

Wouldn't that imply you should be far more careful and selective with your choice of CEO since they can do much more damage? If anything I'd use this as an argument to pay as much as you can afford for the "best". Anything less poses significant risk of damage to the company.

[gaius]

If there’s a correlation between CEO pay and company performance it’s yet to be discovered.

[lordnacho]

Depends on how that tradeoff works. If you wanted to push up CEO salaries, certainly. But you could as well see that recruitment due diligence is of limited power.