Valid.

Furthermore, publicly-traded companies with well-networked execs and typical passive shareholders have exactly the same "Principal-Agent" problems that public administration has, and for the same reasons.

Compensation with Options is a bandaid, the main deterrent is various federal agencies and the volumious mass of regulations and laws enforceable against corporate managers. (Mostly at taxpayer expense...)

Government is fiat. Corporations are fiat, too, especially large and highly traded ones.