CEOs currently get paid either way, either by golden parachutes and retention bonuses when the company fails or by big paydays when the company grows. It's in

CEOs currently get paid either way, either by golden parachutes and retention bonuses when the company fails or by big paydays when the company grows. It's in the best interest of the shareholders that the CEO of a failing company either have faith that it will turn around or negotiate an acquisition. I don't believe this is the case with current executive compensation structures. And at least this penalty would be an incentive towards shrinking the company via attrition instead of disrupting the lives of thousands of employees and shocking the labour market.