Stock options do not eliminate the principal- agent problem entirely for each of the following reasons except which one?

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If a company's stock price rarely changes, then the value of the stock options will not act as a strong incentive for executives to improve company performance or make decisions that benefit shareholders. This does not eliminate the principal-agent problem, as executives may still prioritize their own interests over those of the shareholders. However, the other choices do eliminate or mitigate the principal-agent problem to some degree. B) A company's profits depending on the actions of all employees means that executives have an incentive to ensure that all employees are aligned with company goals. C) Executives not having unlimited control over all employees and their actions means that they cannot completely direct employees to act in the best interests of the company, but may have to rely on incentives and other methods to persuade them. D) Stock prices fluctuating for reasons not directly related to a company's profit means that executives may feel pressure to manipulate the stock price through legal or illegal means in order to maintain their own compensation, which can exacerbate the principal-agent problem.

Stock Options Do Not Eliminate the Principal- Agent Problem Entirely