I think it's more a lack of long term thinking. Leaders that do not have a long term stake in the company but who can profit from a rise in the stock price in the short term.

What if executives could only sell their shares five years after they acquired them? What if they experienced losses when the company does?

Boards and shareholders need to get smarter. I'm hesitant to regulate it but I see no problem the SEC rating companies for their incentive structure. It should be updated whenever leadership changes or the company changes compensation.

Companies lad by founders who still have most of their wealth in company stock should garner the highest rating. Companies that don't require CEOs to invest and who allow CEOs to exercise options stock and sell stock whenever they want might get the lowest.

How executives can sell stock should be part of that rating. If executives can only sell an amount of stock gradually, say in 8% increments every month for the next year and can't change that schedule, that is safer for shareholders than allowing them to sell whenever they want.