There is a good theory on why CEO's are paid more than they're worth called tournament theory.
A person in an upper layer of a hierarchical organization is paid for the value they provide PLUS an amount that incentivized anybody below them to reach that layer. If everybody is paid just for the value they provide, they wouldn't have a reason to try and reach higher layers and they would minimize work. After all, we cannot assume the value a person provides goes up in higher layers.
This additional pay bubbles up in larger organizations to exorbitant levels for CEO's.
There is a good theory on why CEO's are paid more than they're worth called tournament theory.
A person in an upper layer of a hierarchical organization is paid for the value they provide PLUS an amount that incentivized anybody below them to reach that layer. If everybody is paid just for the value they provide, they wouldn't have a reason to try and reach higher layers and they would minimize work. After all, we cannot assume the value a person provides goes up in higher layers.
This additional pay bubbles up in larger organizations to exorbitant levels for CEO's.