It’s not really punishment if you don’t care what your share price is. A lower share price doesn’t hurt a company unless perhaps they are trying to do a secondary offering or something.
It does, however, hurt the Wall Street investors. If they have enough power to do so, they will replace the CEO if a share price is too low for too long.
That’s what creates the short term incentive that is a trouble and a lot of public companies. If the CEO has control of the voting shares, that pressure is relieved.
