Why not both? The management acts on behalf of the shareholders. If they break the law, go after the officers with criminal charges, and make the shareholders liable financially. It'll make management less short-term/risk-loving and shareholders will pick their management much more carefully.
> go after the officers with criminal charges, and make the shareholders liable financially
Even if the officers serve a prison term and forfeit all personal fortune, companies will still put them on some comfortable position (pre-bribing other officers as a side effect) after they get out.
