This view assumes they actually do their job for the good of the people and also happen to profit off of what they privately learn in doing so. Instead of making decisions based on what can get them the better payout or preservation of their investments.

To make it a programming analogy, to someone who has no clue about coding a yearly bonus to each developer based on lines of code written sounds like a good way to reward the more productive developers. But anyone with a couple days experience realizes how trivial that system would be to game.