The most efficient way to overcome the principal-agent problem in a firm is to:

Provide stock option to the agent This issue emerges when a person known as the agent consents to work for another which is the principal for some financial gains. Such arrangements may cause tremendous expenses for the agent in themanner prompting the issues of good risk and irreconcilable circumstance. Inferable from the expenses brought about, the agent may start to seek after his own particular plan and disregard the best rule and practice that will benefit the principal's work