Gibbons, a professor of organizational economics at MIT, pointed out that in fact the principal (the owner of the firm, for example) profits from a variety of outputs from the agent (the employee), and that many of these outputs are not highly visible or measureable in any numerical sense. Organizations depend on employees engaging in mentoring and in team work, for example, which are often at odds with what the employees would do if their only interests were to maximize their measured performance for purposes of compensation.
It does not have to be at odds if focusing on the long term
