When management and ownership are separate, a firm can incur agency costs. These costs are due to a misalignment of goals where the managers goals are not the same as the owners goals. The resulting costs often come in the form of the excessive consumption of perquisites. Go to the internet and do a search for Dennis Kozlowski of Tyco, then report your findings.

1. Who is Dennis Kozlowski?

2. Identify some of the agency costs incurred by Tyco shareholders that were the result of Kozlowskis excessive consumption of perks?