I don't even think CEOs are paid for their contacts. If you look at the number of CEOs who jump to unrelated industries, it's doubtful many of their contacts carry along. Also if contacts were so paramount, sales people would have an almost insuperable advantage - it is their job to fatten their rolodex everyday; whereas people from other departments can and often do become CEO.
I've been reading a lot of Thorstein Veblen lately, who is very thought provoking; and I think what he would say (not that I completely agree, but it's an interesting viewpoint) is that CEOs are paid to be the right social class. The board of directors prefer to rub shoulders with someone they can easily relate to; a person who, say, plays a decent game of golf and can casually discuss the market for mansions as well as the features of the latest model Porsche. (Let's be serious, all else being equal we all prefer interacting with someone who shares our interests.) So they are willing to sacrifice 0.1% of the company's bottom line in return for smoother interaction with the person who will, in effect, be their main point of contact. People who already earn a lot of money (and would, of course, not switch for a decreased salary) thus have a big advantage when interviewing for the chief position. In fact, if nobody in the company is already living a sufficiently wealthy lifestyle, this model would suggest it's more likely for an outsider to be brought in (upon, say, acquisition).
I've been reading a lot of Thorstein Veblen lately, who is very thought provoking; and I think what he would say (not that I completely agree, but it's an interesting viewpoint) is that CEOs are paid to be the right social class. The board of directors prefer to rub shoulders with someone they can easily relate to; a person who, say, plays a decent game of golf and can casually discuss the market for mansions as well as the features of the latest model Porsche. (Let's be serious, all else being equal we all prefer interacting with someone who shares our interests.) So they are willing to sacrifice 0.1% of the company's bottom line in return for smoother interaction with the person who will, in effect, be their main point of contact. People who already earn a lot of money (and would, of course, not switch for a decreased salary) thus have a big advantage when interviewing for the chief position. In fact, if nobody in the company is already living a sufficiently wealthy lifestyle, this model would suggest it's more likely for an outsider to be brought in (upon, say, acquisition).