We've all heard of the exorbitant payoffs a number of failed CEOs have received in the past ten years or so.

Leo Apothekar, CEO HP, fired, walked away with a golden parachute of $13.2 million

Robert Kelley, CEO Bank of New York Mellon, ousted, $17.2 million

Carol Bartz, CEO Yahoo, fired, $10 million

First, let me be clear that I have met and worked with some excellent CEOs over the years. I will also tell you that it is my opinion, though a company's failure may be the fault of the CEO, his or her compensation is not. Most people would take a boatload of money if offered.

On the other hand, I think my conscience might pang me if I was paid that well after failing. It would feel strange to me, and I think my personal pride and self respect would take a hit. Here's the rub: These same CEOs would never tolerate the rewarding of failure within their organizations. They know how antithetical that is to the integrity, morale and the upward energy of any organization. This hypocrisy alone would make me feel dirty.

John Chidsey, CEO Burger King, failed, almost $20 million

Baxter Phillips, CEO Massey Energy, company sold to a competitor, $14 million

Ian McCarthy, CEO Beazer Homes, ousted, $6.3 million

The question is how to put an end to these bloated parachutes. Let me assure you that the answer is not found by government regulating compensation. I think our government should regulate the unethical, unhealthy and illegal side of business, but if it has the power to limit a CEO's salary, it can limit all salaries-including yours. Now that would be socialism.

One cannot count on the benevolence of CEOs to halt this practice. There's not enough of that to go around. Another option is to put the responsibility at the feet of the Boards of Directors. They are, after all, the ones making the deals and offering the compensation packages. But as long as they have a healthy income stream, why should they care?

Charles Prince, CEO Citigroup, failure, around $45 million

Bruce Karatz, CEO KB Homes, left after graft investigation, up to $175 million

Michael Ovitz, CEO Disney, after just two years of service, $140 million

In reality, this practice has to be nipped at the investor level. When the investors finally get tired of throwing good money after bad, they will withhold it. In a capitalistic system, as long as people are willing to pay for stupidity, it's stupidity they will get. If you take money out of the hands of the directors, then this stupidity will dry up fast.

One of the most idiotic practices in modern business is the chasing and hiring of celebrity or superstar CEOs. The belief is that these sexy hires will draw investors and grab attention for the company. Sometimes these CEOs do have that effect...temporarily. What ultimately draws and keeps investors, though, is an excellently run company giving them a consistently good ROI over the long haul.

Hank McKinnell, CEO Pfizer, failed, $198 million

Frank Newman, CEO Bankers Trust, failed, $55 million

Stephen Hilbert, CEO Conseco, failed, estimated $72 million

Rather than seek superstars, it actually tends to be more effective to groom CEOs from within.

Let them rise through the rank and file. Let them see and know the business from every angle. Let them have served in positions their subordinates now serve. They will care more for the long-term health of the company because they have bled there. They will care for the employees because they will have bled with them. If they've earned their way to the top, then they will have goodwill and trust from their employees from the start.