Respuesta :
For a major public firm, utilizing stock-based compensation is the best way to lessen the agency problem.
Ideally, the manager's compensation should be based on the company's overall performance. If a manager also has a stake in the organization, then they must avoid the conflicts of interest that come with principal-agent relationships. As a result, the ideal way to solve the agency problem should be to adopt stock-based compensation.
A method of paying employees, executives, and directors of a firm with equity in the business is stock-based compensation, also known as share-based compensation or equity compensation. In order to inspire employees beyond their ordinary cash-based remuneration (salary and bonus), as well as to match their interests with those of the company's shareholders, this method is frequently adopted. Employee stock awards typically require a vesting period before the shares can be considered earned and sold.
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