# Agency Problem

*Professional & Ethics — Finicade finance glossary*

The conflict when the people running a firm (managers) don't share the interests of its owners (shareholders). Pay, incentives and governance all exist to keep the two sides pulling the same way.

**Also known as:** stakeholders

**Related terms:** [Corporate Finance](https://finicade.com/glossary/corporate-finance), [Fiduciary Duty](https://finicade.com/glossary/fiduciary-duty), [ESG](https://finicade.com/glossary/esg)

**Taught in:** Charter Climb — Corporate Structures & Governance

Source: https://finicade.com/glossary/agency-problem