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

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The most common way that agency conflict problems are addressed in most corporations is by minimizing the number of decisions that a manager makes where there is a conflict between the managers interests and those of the shareholders. This can be done through the use of performance-based pay and other types of incentives that align the interests of managers with those of shareholders. Other methods, such as terminating the employment of employees or using outside adjudicators, may be used in some cases, but they are less common. Prosecuting managers who have used company money for their own benefit is a legal remedy, but it is not a typical way to address agency conflicts.

What Is the Most Common Way That Agency Conflict Problems