What incentive would an executive have to run a business into the ground?
It's a business - the motive to gain profit and ambition won't leave because profit is shared.
Regardless - my point is - what's wrong with being generous to workers? Why not share a bit of that with people who work so the motivation and incentives are spread out?
Why don't we try some ideas, test some regulations and see how they work, so we know what incentivizes and what doesn't?
Have an administrative body view it on a case by case basis and come up with a novel payment plan, in a case where a CEO gets a golden parachute and employees are left unemployed, that payment would be suspended and apportioned fairly. Maybe it will even go back to investors.
For a look a generous labor systems in powerful economies, I'd like to bring up Germany: http://www.siegwart-law.com/Sgal-en/lawyer-german-employment...