Punishing the company, versus punishing the executives

According to AP "The U.S. Transportation Department said on Friday that United Airlines must pay a $30,000 fine for failing to include a federal tax when it quoted some airfares on its Web site. The government said United left a 7.5 percent federal excise tax out of some fare quotes for two-and-a-half days. United spokesman Rahsaan Johnson says a programming error moved the tax from the base fare, where government rules require it. Instead, the tax was part of the final price a customer sees later. In August, the Department of Transportation hit United with a $75,000 civil penalty for other advertising violations. United only had to pay half, as long as it had no more violations. Now, the agency says United will have to pay the other half, or $37,500..."

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All these fines come out of the company's profit. Since shareholders have so little say in the running of the company, the fines should be paid out of the CEO's pocket. It would be interesting to see how quickly the behavior changes...Agassi alleges that Pete Sampras, a guy who grossed many millions, once tipped a guy $1 for valet parking...Whether this is true or not, the message being hinted at is that folks with a lot of money sometimes are loath to part even with a buck. Therefore, charging the fines to the CEO could potentially make him more law-abiding.

OTOH, one could argue that since shareholders elected the Board and therefore the execs, they got what they paid for...Unfortunately the consumers are the ones left grounded...