It is not a question of economic system. I don't even know what that means. His employer signed a contract saying if he messed up he still gets paid, AND failed

It is not a question of economic system. I don't even know what that means. His employer signed a contract saying if he messed up he still gets paid, AND failed to be sufficiently critical of his risk taking. As a result, they suffered. The only thing it has to do with the economic system is the existence of private contracts. I may disagree with their hiring policy, but it's none of my business. Would you feel any better if the golden parachute was simply paid on top of his salary? Are we playing downvote-disagree?