"On the other hand, you know, the buck has to stop somewhere. But where? The CEO is an obvious answer, and he is gone, but the buck is still moving. It might get the board. What's next? Should the shareholders fire themselves, for failing to catch the problem in time?
There is a traditional model in which the board of directors represents the shareholders: When management messes up, the board gets angry on behalf of the shareholders; their dudgeon becomes its dudgeon. The modern model is increasingly that the board is identified with management: When management messes up, the shareholders get angry at the board; their dudgeon turns against the board. The modern model might be more accurate in describing the relationship between many boards and managements. But you want a balance between dudgeon and continuity. If the managers mess up and the board gets rid of them, it can demand that the new managers fix the problem, and hold them accountable for doing it. But if you get rid of the board too, then who stays around to make sure the problem gets fixed?"