Where's the pressure coming from? To answer that question, we need to look briefly at the principal-agent theory—the doctrine that the interests of shareholders (principals) aren't aligned with those of managers (agents). With- out powerful financial incentives to focus the interests of principals and agents on maximizing shareholder value, the thinking goes, agents will pursue other agendas—and in the process, may neglect to pay enough attention to efficiencies or squander capital investments on pet projects—at the expense of profits that ought to accrue to the principals.