Question: Under a compensation plan approved by Tesla shareholders two years ago, [Elon] Musk received options to buy 1.7 million shares of Tesla stock at $350.02

Under a compensation plan approved by Tesla shareholders two years ago, [Elon] Musk received options to buy 1.7 million shares of Tesla stock at $350.02 a share, ... less than half the current price ... Tesla has achieved the operational goals that trigger the compensation payout and so Musk has ... a theoretical gain of $770 million as of the close of trading Thursday. CNN, Chris Isidore, 1 June 2020. What is the agency problem? Explain how agency theorys solution to the agency problem in finance has led to compensation of the kind received by Mr Musk.

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