There aren't enough things an executive can go to jail for.
Fines don't do anything to deter bad behavior. Either:
* The company pays
* They pay and the company mysteriously increases next year's comp / grants a "loan" / etc
* D&O insurer pays
In all three cases the money comes out of the shareholders' hides. It provides zero personal deterrence. The payoff matrix, as seen by a sociopath, makes it rational to always defect against the common good.
The only punishment that can really focus attention is physical imprisonment in a facility they can't choose.
SOX did this for financial reporting and gee shucks it turned out executives can follow the law after all!
Fines don't do anything to deter bad behavior. Either:
* The company pays
* They pay and the company mysteriously increases next year's comp / grants a "loan" / etc
* D&O insurer pays
In all three cases the money comes out of the shareholders' hides. It provides zero personal deterrence. The payoff matrix, as seen by a sociopath, makes it rational to always defect against the common good.
The only punishment that can really focus attention is physical imprisonment in a facility they can't choose.
SOX did this for financial reporting and gee shucks it turned out executives can follow the law after all!