This isn't true as written. CEOs aren't automatically liable for crimes of the company or employees.
If a CEO intentionally facilitates or participates in those crimes: Yes, open to liability.
If an employee or department commits crimes without the knowledge of the CEO: Very different situation.
The cynical take is that CEOs are always aware of crimes or that they're encouraging the crimes to happen. I've personally seen several cases of people committing fraud and even a federal crime on the job, and in every case it was done secretly with the belief that it was going to be an undiscovered way of advancing the person's career. People try to game the advancement system at every level, including executive levels.
