Generally, what types of compensation should an employer offer employees? What would best help with the principal-agent problem? Why? 

2. When issuing stock options, what do you think is an appropriate exercise price to set? When Jimmy got his options, they would be granted "at-the-money". What does this mean? 

3. What is the difference between granting stock options and granting restricted stock units? What is the difference in the financial reporting of the two? 

4. Why would firms have two (or more) classes of common stock