I don't think paying people tens-of-millions of dollars in salary is good public policy. he didn't contribute anywhere near that amount of value to the company. If CEOs want to make this kind of money it had better be tied to results only. what kind of logic is "paid if you succeed, paid if you fail" ?

For normal folks? For sure. And the law doesn’t allow it for normal folks.

This type of thing is only possible when special rules are made for people with enough power they can hide massive fraud/malfeasance in some cases.

This lawsuit seems unlikely to go anywhere though. And frankly, will just increase asking price for CEO salaries.

just like doctors insurance, are there ceo insurance as well ?

E&O (errors and omissions), and D&O (directors and officers) insurance yes.