In Japan it's not unheard of for chief executives to take pay cuts when their plans don't work out. If there are bonuses in good times, would it not incentivize executives to perform better if there was also docked pay and executive layoffs in bad times?

I know some of you might think no known executive would take that job, and I actually know first hand that's largely true. I also know some that definitely would, but that's besides the point. As an investor, you don't want to hire those c-suites that are allergic to accountability.