Costs borne by the principal to mitigate the problems associated with using an agent. […] They may include gathering more information on what the agent is doing (e.g., the costs of producing financial statements or carrying out audits) or employing mechanisms to align the interests of the agent with those of the principal (e.g. compensating executives with equity payment such as stock options)
Bibliography
“Agency Cost.” 2022. Wikipedia, September. https://en.wikipedia.org/w/index.php?title=Agency_cost&oldid=1108047027.