Which statement is correct? A$)$ An agency problem does not exist if the manager owns less than $100\%$ of the shares outstanding. B$)$ The agent hires the principal to act in the agent's best interests. C$)$ When discussing the relationship between management and shareholders, the shareholders are considered the principal. D$)$

Management compensation based on performance is not considered an appropriate means for mitigating the agency problem between stockholders and management.