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> management holding the business hostage because they prefer their salary to shareholders having a return.

But Ive been fed that the principal agent solution of equity and executive privilege prevents this! Next you'll tell me capitalism doesn't allocate resources efficiently.



> the principal agent solution of equity and executive privilege

This phrase is distilled nonsense. Executive privilege [1] has precisely nothing to do with the principal-agent problem [2].

[1] https://en.wikipedia.org/wiki/Executive_privilege

[2] https://en.wikipedia.org/wiki/Principal%E2%80%93agent_proble...




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