Stewardship theory is a theory that managers, left on their own, will indeed act as responsible stewards of the assets they control.
This theory is an alternative view of agency theory, in which managers are assumed to act in their own self interests at the expense of shareholders.[1] It specifies certain mechanisms which reduces agency loss including tie executive compensation, levels of benefits and also managers incentive schemes by rewarding them financially or offering shares that aligns financial interest of executives to motivate them for better performance.[2]