Except when it isn't. It turns out that if the free market is focused on making the CEO and his cronys rich
So what? Who cares if he gets rich? I don't. It isn't as if he's keeping his cash in a shed at the bottom of the garden is it. Whatever money he has control over is working 24/7 in the world economy, investing in other businesses, new technology, creating jobs.
But regardless, read back your own comment. You are hypothesising a CEO who's making poor investment decisions. What do you think is eventually going to happen to his business and money? Yea - he's going to lose it. The chances are he wouldn't have made it in the first place. If you want a good ceo to make poor investment decisions, simply give him a government contract.
Now your average commissar doesn't give a crap whether he makes a bad investment decision or not. It's not his money. He doesn't care.