Why would anyone sign up to be the fall guy? Perhaps because the payoff is worth the the punishment. So make the punishment algorithmically outweigh the payoff, for example by seizing everything they were paid to be the fall guy plus jail time. Doesn't seem like a hard problem to solve if politicians were actually interested in holding CEOs and corporations accountable, the problem is the politicians themselves are bought and paid for.
This already happens with professional athletes, so we have a model to look at. Look, I don't disagree that all people should be held accountable for their actions, but sometimes the solutions people fire off half-cocked (throw a CEO in jail until they de-anonymize their platform, for example) are not going to be used in such a naive way.
I believe we should do away with limited liability as a concept. Companies would get lot less investments and lot more scrutiny if every stock holder was criminally held liable as a class for any crimes they commit. Lot of people would simply choose not to invest in such ventures or only select those where they can have sufficient oversight.
AFAIK limited liability is more about financial liability, not criminal. People are still responsible for actual crimes they commit, we just may need to classify more things as crimes.
I think discouraging investment is the opposite of what leads to a prosperous society. We'll just have a bunch of rich landlord sitting on piles of cash, afraid to give it to anyone because the risk of any jail time at all is probably too high for most.
And that doesn't even account for non-institutional investors. Can you imagine putting people in jail because of the meme stock they bought on Robin Hood?
