I wasn't making a normative claim, only disagreeing with OP's characterization that executives' pay packages are justified by the threat of going to jail.
>If you're rewarded for your good decisions, it seems normal to also be punished for the bad ones, in a proportional manner.
FAANG engineers are paid pretty well. Should they go to jail (or even fined 5-6 figure sums) for bugs they're responsible for?