If someone (individual or company) is responsible for their decisions and it turns out to be a bad decision, then that person should not benefit from the bad decision at the expense of others who did not make the bad decision.
It is, in effect, rewarding someone making the bad decision and punishing someone who didn’t make the bad decision.
It is so backwards, I can’t even begin to explain it to you if you don’t see how clearly obviously wrong that is.