Think about that and consider the cascading consequences you’d face for years in most states if you let your driver’s license expire and get pulled over.
Then recurse that if that shareholder is also corporate. Don't let them just bankrupt empty shell companies, hold the parent companies responsible too.
You think CEO compensation is out of control now? Think about what you'd have to pay someone to be the CEO of any moderately large corporation if that were the case.
You think your boss is up your ass now? Think about what they'll be like when they are strictly liable for anything you do.
I'm not against for executive responsibility, but you have to consider the externalities of your policies.
The other side of the coin of CEO compensation not being related to real-world concern is that CEO compensation isn't related to any real-world concern.
There is no reason to think it will increase or decrease due to such a change.
I think this puts the incentives in the right place, being able to tell your CEO "no, I'm not willing to risk my career for that" I think would be a powerful self-regulating force and also provide cover from who can't afford to say no from being thrown under the bus. It's essentially professional licensure but reversed.
Are you mandating that as part of the law? Otherwise you've just incentivized "creative" non-standard hierarchies. Again, externalities
So if the fuckup is big enough they now owe 5 years of their pay. Should be motivating enough.
That's it. Nothing else. You'll see a massive amount of bad behavior from companies instantly stop. When your neck is on the line, you won't do it. Or you'll quit.
However given history, this will never occur. Unfortunately thats now how we think of commerce, and so companies can try to act as they please with socialized risk and all gain.