It says that the self-interest of an agent (e.g. the CEO) is not identical to the interests of the principal (e.g. the shareholders).
Why do I mention this? The CEO being rich is a measurement of the financial success of the agent, but not of the principal. You are rather interested in measuring the success of the principal.
> CEOs are rich so they are successful.
"Successful" in which sense?
The most reasonable definition "Successful in convincing other people to give them money" is rather a tautology. :-)
A very related problem concerning your argument is well-known for decades: the Principal–agent problem:
> https://en.wikipedia.org/wiki/Principal%E2%80%93agent_proble...
It says that the self-interest of an agent (e.g. the CEO) is not identical to the interests of the principal (e.g. the shareholders).
Why do I mention this? The CEO being rich is a measurement of the financial success of the agent, but not of the principal. You are rather interested in measuring the success of the principal.