I had one CEO who was completely clueless back in 2000. He wanted my team to participate in a sales leads contest. We all told him that we were more than happy to provide him the sales leads as part and parcel of doing our jobs, that his silly rah-rah-rah sales contest was demeaning to us as professionals and we didn't want to participate even if participating in the sales contest involved getting prizes. We had a meeting with him where he stated that if we didn't want to participate in the sales contest, the next paycheck would be our last one. We told him we understood what he said. We did participate in his stupid sales contest unless all of us had jobs lined up - It took a month. Then we all handed in our resignations. On the same day.
I understand from those who stuck around until the last day of existence the firm ten months later that he never tried that sales contest idea again. In general, the leads that he generated from his sales contest turned out to be garbage because everybody else was gaming the contest in an attempt to win the prizes.
From my life experience, the way to deal with stupid people is that unless you make them pay a price - preferably a stiff price, for being stupid, they'll just keep on acting stupid and driving you crazy with their acting stupid.