Frankly, I'd just prefer really huge fines, preferably scaled as a percentage of either gross or net revenue or profit.
1. Dilutes that shares, punishing the people who can effect the most change (shareholders) 2. Puts the government on the inside. With ownership, the government can then demand access/knowledge that they can't from a purely private company. And no company is going to want to deal with that headache if they don't have to.