You made the assumption that it was fairly valued before and the loss was a "true" loss.

But possible it could have been over-valued before, unbeknownst to low-information external investors. After all, right now it as a PE of 450+. (Google PE is 17, Meta PE is 27, Tesla PE is 330)

The stock dropping on CEO departure had nothing to do with his personal performance, and everything to do with the information that he revealed on the way out. Why would the CEO leave a rising and successful company on the verge of innovation?

And thus tying it back to pay - people should be paid based on their output and their personal performance, not based on simply serving as a signal which any warm body can do. That said, I don't think truly amazing CEOs are overpaid, e.g. steve jobs of old.