[luckyme]

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We don't "know it", but thats where competition comes in. Those companies who either accidentally or intentionally get closest to optimal will do better than those that don't.

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hmmm.. I guess it was a tougher question than I thought. I'll try a different route...
Did Warren Buffet screw up bigtime giving him money to Gates to manage not realizing that Gates wasn't getting any big bucks to manage the organization and therefore will screwup badly.

I read that Expo 86 in Vancouver had a CEO that took it on for $1 and it was the only Expo that came in on time and on budget.

I understand incentive, I understand efficiency gains, PR gains, etc. I'm trying to nail down this linkage so that 'poorly paid CEO = badly run company' or well paid CEO = well run company and how we can be so confident that the market isn't full of Enrons, etc. As well as the specific amounts always ending up to be correct.
no hurry.
hope that's clearer, thanks, luckyme