Quite recently, Rep. Barney Frank of Massachusetts introduced a bill “to give investors a way to formally express their approval or disapproval of executive-pay plans.” Apparently their existing freedom to sell shares of companies led by overpaid executives is not enough.

With executive compensation very much in the news, though, it’s worthwhile to look at the performance of five notable companies whose past or present chief executive officers have become billionaires. Judging by the share performance of General Electric, Disney, Coca-Cola, Lehman Brothers, and Bear Stearns, investors in those companies received more than their money’s worth.

When Jack Welch took over as chief executive of GE in 1981, the age of sprawling conglomerates was coming to a close. Rather than pre-emptively selling off GE’s vast array of businesses, Mr. Welch instituted a “perform or be sold” mandate that made GE the darling of small and large institutional investors alike. During his 20 years at GE’s helm, its stock rose 3,800%. For those who might argue that he achieved those returns during an era of booming stock prices, the S&P 500 rose 936% over the same timeframe.

When Michael Eisner took over at Disney in 1984, the sleepy firm’s market cap was $2 billion, and various leverage-buyout experts were circling the company with designs on a breakup. Mr. Eisner’s turnaround included the purchases of ABC and ESPN, and by the time he left in 2005, shares of Disney had risen 1, 971%, compared to 632% for the S&P.

The tenure of Coca-Cola’s chief, the late Roberto Goizueta, occurred alongside a renaissance for Atlanta, which was largely funded by appreciated Coke stock — Coke’s headquarters are in Atlanta. Charitable foundations sprouted, doctors retired to work in free hospital clinics, and Emory University’s endowment rose to become the nation’s 13th largest thanks to Goizueta’s brilliant stewardship. While not the most civic-minded person himself, Goizueta’s maniacal dedication to shareholder value drove Coke’s shares up 4,223%, versus 710% for the S&P, from 1981 until his death in 1997.

At Bear Stearns and Lehman Brothers, James Cayne and Richard Fuld took over, respectively, in 1993 and 1994. They arrived at a time of heavy layoffs on Wall Street, but since then have guided their firms through a bull market, the 1998 Asia/long term capital management crisis, the dotcom boom and bust, and a brief recession, along with a resurgence for stocks since 2003. Amidst all this volatility, Bear’s stock has risen 1,175% over the past 14 years against 228% for the S&P, while Lehman’s is up 1,529% over the past 13 years against 209% for the S&P 500.

While all of the above corporate chiefs reached the billionaire plateau, one would be hard pressed to find shareholders who would begrudge them their fortunes. What they accomplished was truly amazing, and ideally it puts the ever-present controversy over executive pay into the proper context. As evidenced by the share performance that each oversaw, a great CEO can create jaw-dropping returns for investors.

When the New York Knicks signed Larry Brown to the NBA’s richest coaching package, and when Home Depot signed Robert Nardelli to an even richer package, their respective organizations were hoping both could generate the kind of impressive returns that past and present business leaders have proven capable of achieving.

Executive hiring is not as foolproof as their tenures indicate, but if it were obvious where to find the next Richard Fuld or Jack Welch, investing would be easy.

Absent a hotline to the future, investors will continue to approve and disapprove of management and pay through the purchase and sale of shares. In light of that, Rep. Barney Frank’s newest legislation is a redundant exercise.

Mr. Tamny is editor of the soon-to-be-launched RealClearMarkets. His email address is jtamny@realclearmarkets.com.