What is the most common way that agency problems are addressed in most corporations?

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The most common way to address agency problems is through minimizing the number of decisions that a manager makes where there is a conflict of interest between the manager's interests and those of the shareholders. This is achieved by setting clear objectives and incentives aligned with the shareholders' interests, monitoring the manager's performance, and providing regular feedback. Prosecuting or terminating employees found to have acted against the company's interest is also a possible course of action but less common than proactive measures to prevent conflicts of interest from arising in the first place. Using outside bodies to adjudicate conflicts is also an option, but it may not always be practical or effective, especially in small or closely-held companies.

What Is the Most Common Way That Agency Problems Are