The composition of Disneys board of directors under the management of M. Eisner has been the focus of several research studies and has received wide coverage from the press. Being the CEO of Disney for many years and holding a significant proportion of stocks -thus voting power-, Eisner had gradually exerted his influence into the board of directors. This comprised of many members (16 in total), among which the head of his kids school, the president of the University of another of his kids, the architect who designed his home, two of his attorneys and a fund manager working for his family (Orwall and Lublin, 1997).

Describe this problem from an agency-theory perspective.