The manager invests what he does not steal in a project that earns a gross rate
of return R, which is greater than one, and from which he obtains the share a of
profits. The manager's optimization problem is given by
Max S U(S; R, k, a)=Max[aR (I-S)+S-(S2/2k)],
and the optimal amount of theft, S*, is found by solving
L;/LS"1!(SH/k)!aR"0,