<ul><li>The Principal-Agent Problem arises when an agent, who is supposed to act on behalf of a principal, has incentives that diverge from the principal’s interests.</li><li>Three business thinkers provide their perspectives and solutions to align incentives with desired outcomes.</li><li>Rory Sutherland suggests rewarding long-term thinking and innovation to align agents’ actions with principals’ objectives.</li><li>Nassim Taleb advocates for 'skin in the game', where agents share both the risks and rewards, ensuring accountability.</li><li>Naval Ravikant focuses on entrepreneurship and decentralization, promoting personal ownership and equity ownership for employees.</li></ul>

Aligning incentives with desired outcomes

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