You have to look at it from the perspective of the CEO and C Suite. For them they likely don't really care about harm done to whoever had their data compromised, but what they do care about is their bonus. They likely have detailed bonus tiers and if this fine reduces their bonus and incentives then it is likely that change will occur. In many / most large companies, C-Suite pay and the bonus structure is the major driver of all corporate decisions.

For an example, just look at the recent US corp. tax cut. One time bonus to employees and then repurchase of company stock to boost the share price and in turn boost executive level rewards.