What is the issue at the core of the principal/agent conflict? Are stock options a good form of employee or manager compensation? Do they begin to heal the inherent conflict that exists between...

What is the issue at the core of the principal/agent conflict? Are stock options a good form of employee or manager compensation? Do they begin to heal the inherent conflict that exists between principals and agents?

Refer to the Corporate Governance issue earlier in this chapter; what is the role of the board of directors in setting the level of executive compensation?