If you punish the CEO for every illegal thing done in a corporation (often without their knowledge), then no wise person would want to be CEO. In order to function, large companies would have to make the CEO position largely ceremonial and appoint desperate risk-takers, and do the actual executive leadership somewhere else.
So a strict rule like that risks setting up a formal scapegoat situation which could then lead to the opposite effect.
Absolutely, the demand for 7 to 9 figure a year jobs that are contingent upon building a functional auditing and compliance org and not openly breaking law would completely evaporate.
I mean we have no lawyer or doctors for the same reason.
So a strict rule like that risks setting up a formal scapegoat situation which could then lead to the opposite effect.