how to mitigate agency problems 
while it is not possible to eliminate the agency problem principals can take steps to minimize the risk known as agency cost associated with it principal agent relationships can be regulated and often are by contracts or laws in the case of fiduciary settings another method is to incentivize an agent to act in better accordance with the principal s best interests for example if an agent is paid not on an hourly basis but by the completion of a project there is less incentive to not act in the principal s best interest 