Ceo's job is to ensure ALL cookers of donuts follow company procedure to produce edible produce to company standard. What the chef (lol) thinks is irrelevant. But the ceo is accountable for all. If he doesn't ensure standards company can get sued in many situations. If company gets sued yet has mandated ceo to act in way yet he isn't and therefore they've been sued, company can fire ceo and sue him. It's called fiduciary responsibility.

Ceo is exposed to huge risk. And is compensated for it, as he should be. Or there will be no ceo's.

U may think you would be different in that situation yet u may change your mind if u got sued don't you think again. U may think u would accept less pay.. do u think ceo pay does not take into account the potential for their lawsuit exposure And how much they could lose financially? Rewards must always offset the risk.