Which of the following are not approaches to resolving the principal-agent problem?
A) ex ante incentive alignment
B) deferred stock options
C) ex post governance mechanism
D) straight salary contracts
E) monitoring by independent outside directors

Question

Quizplus · Accepted Answer

Straight salary contracts are in fact an approach to resolving the principal-agent problem. The other options listed (A, B, C, and E) are all recognized methods for addressing the principal-agent problem.

Which of the Following Are Not Approaches to Resolving the Principal-Agent