James Bond Inc is a film production company that provides pre- and post-production services, and studio rentals, tours and other services for films and other special events. Roger Moore is currently the Chief Executive Officer (CEO) of James Bond Inc. and was recently also appointed Chairman of its board of directors. Roger currently earns a fixed salary of $2,000,000 irrespective of the companys financial performance. Also included in Rogers compensation package is a golden parachute of $50,000,000 cash which must be paid by the company if his employment is terminated. Separately, the chairman position is awarded $30,000,000 cash payment if the company is merged or acquired, and Roger is not retained in the new company. Rogers reputation precedes him as a risk-taker, sometimes, too risky, and dominant and cavalier personality. Under Rogers leadership as CEO, the company acquired studios in Australia and Brazil which have yet to turn a profit. Rogers ethos is to go big or go home which has influenced his expansionist strategy. Oftentimes, these expansions occur without the required board approval. However, now that Roger is board chairman, there are growing concerns that his dominant personality will continue his expansionism but with coerced board support.

Describe the agency problem that you see in James Bond, Inc.

How would you propose that James Bond, Inc. solve this agency problem? Your response should include an explanation with at least THREE solutions