How can I manage the arrogant employee that the CEO likes?

Each person having his how personality to deal with people, its his/her caliber and intelligence to handle the situation.

Any sensible person handles such employee in a very positive way by not giving much importance and with no arguments, avoid any such comments by keeping yourself cool & without showing any responce to his/her arrogant behavior.  

Ignore it does not show him any attention at all the work

I agree with colleagues

You have to deal in a natural way

thanks for the invitation

Thanks 

I support colleague Afzal Khan's answer 

Regards 

Thanks for the invite..

I agree with Afzal Inayat khan deshmukh

Thanks for invitation,

Such arrogant people are usually wasting time in sophisticated discussions, therefore I do prefer not to argue with them at all, but always give them " hard instructions to execute without any argument with a limit time", and in case he refuse or fail to achieve what you have asked him to do during the limited timing, you  may ask to exclude him from your team work.

Automatically ... I follow the orders and systemic plan of the company

Take him/her for a Coffee. 

work with task and schedule with him

Maintain your identity , sooner or later CEO will understand who is good and who is not.