The fix is to make individuals in the company, e.g. the directors, personally responsible. In many countries the legal framework is already in place for that.

The fix is to make individuals in the company, e.g. the directors, personally responsible. In many countries the legal framework is already in place for that. As long as the fines are only coming from the company the only one you're really punishing are the shareholders who really have no control over the company's day to day activities and these decisions. They have no visibility into this either. The CEO should be held responsible for any illegal activities the company undertakes under his direction as should the directors. Assuming they're aware of it. Otherwise the responsibility is probably at some lower level. This does not contradict the responsibility of the company as a legal entity which is a party to these contract. EDIT: A decision that may cost the company 100M in fines in 10 years and help the CEO make his bonus this year is a no brainer. This is not unlike deciding to do share buybacks when you hold stock options...