Gill Bates is the CEO of a large company. His compensation is based on current profitability. He's considering undertaking one of two investments available to the company:
(a) one that yields profits of $500 million in each of the next 5 years and none thereafter, and
(b) one that yields annual profits of $300 million over 20 years. He selects the first investment. How could this example illustrate the agency problem?