You get the idea. If the legal system was setup like that, you would be better off disclosing the breach and losing your job rather then risking prison time. You can always find another job.

That creates an incentive for employees to cause data breaches and then disclose them for massive profit.

I think this is a false premise. What is to stop an IT employee from installing Oracle database in production without a license (assuming technical leadership is incompetent like at Equifax), waiting for a bit, and going to the BSA or Oracle and saying, "hey come get your pay day".

One, I think anyone with a shred of ethics won't do it and two, I think if we put the ceo AND the board in prison for the actions of the corporation and its employees (while following directions), then we create a strong incentive for corporations to be of manageable size. Now, I hear a lot from our politicians crow about how much they love small business and how much they hate "too big to fail". This will be a big boon for that. However, I am not holding my breath.