So they quit, and someone hungrier + lower on the ladder gets a chance to prove themselves by turning the company around, rewarded by staying in the position when it's cushy again.
I doubt most of the executives see themselves as personally responsible for the financial situations of their companies, especially during an unprecedented global economic shutdown. Not because they are any different from you or me or any of these other self righteous commenters, but because they are the same.
If American culture were more like ancient samurai culture, perhaps they could commit seppuku to restore their honor. But I would prefer to restore proper incentives instead, and weaken the power of chapter 11 so this isn't a problem in the first place.
Maybe it is, but the capital structure and the operating team are separate and distinct things.
It’s also important to consider, if the bank debt can’t convert to equity via a ch11, then overall availability of capital will sharply decrease. Which in turn hurts every business around.
It rarely works in large ones. Especially for an abrupt transition. An effective executive, particularly on the commercial side, is a living walking Rolodex of internal and external relationships which are immediately no longer working on behalf of the company.
Worse, they may work against you. I've seen competitors come swoop up top sellers or sales leaders and have them strip mine the good accounts from the remaining customer base.