I agree with you. I’m not sure what the enforcement mechanism would be though. Boards suing CEOs more frequently over negligence? CEOs buying a certain amount o

I agree with you. I’m not sure what the enforcement mechanism would be though. Boards suing CEOs more frequently over negligence? CEOs buying a certain amount of equity in a company before they join? CEOs are highly leveraged. One wrong bet could cost the company/employees/shareholders more than a CEO (even a multi-millionaire) could repay. In reality this leaves the board with recouping maybe a few million from the CEO on a shortfall that may be orders of magnitude bigger. I think pragmatically most boards just move on, let the CEO take the reputations hit, and focus on trying to find someone better.