Then why should shareholders get the profits from the work they don't comtrol?
> the individual employees who commit crimes face criminal prosecution and punishment.
Do they?
Because they invested money into the corporation when the corporation issued stock.
It seems like you're arguing that shareholders should reap rewards for actions that a company takes but be shielded from negative financial repercussions that result from criminal actions it takes.
This creates a moral hazard similar to to the "too big to fail" situation of banks. It incentivizes risky and potentially criminal behavior because ownership is able to capture the value of any upside and is shielded from the downsides of the behavior.
I agree. That is part of the risk investors take.