What is agency theory? What are the most effective measures to achieve the desired results for stockholders? How would you get the managers to do what is best for stockholders in the long run?

Give them a cash bonus if they make target income? A revenue sharing program with different cash bonus at different levels of goals?

Give them a stock bonus if they make target goals?

Give them a stock option at a bargain price to be exercised after a certain period of time?

What do you think would work best and why?