The principal-agent problem seems to have become an epidemic in corporate
A potential solution is to allow shareholders a larger part in institutional governance. Currently, management rarely complies with shareholder resolutions. The Economist reported that a proposal by the Securities and Exchange Commission to make it easier for shareholders to nominate candidates to boards of directors was shot down by corporate lobbyists. If the SEC can't even get a proposal passed, how are we to reign in the power of CEOs?