This paper explores the implications of digitalization and business model innovation for the principal-agent conflict. Continuous digital transformation has recently become a feature sine qua non for companies. It is also stimulating business model innovation resulting in the growing adoption of ecosystem-based models. These trends may have significant implications for the principal-agent relationship, essential for understanding value creation by a firm. In order to analyze the impact of digital transformation, we use blockchain technology as a proxy. To measure the potential impact on the principal-agent conflict, we study management and shareholder-sponsored proposals at annual meetings. The level of shareholder involvement in governance is measured based on the number of shareholder-sponsored proposals received. In addition, we measure shareholder support for management-sponsored proposals. A sample of 2481 NYSE, Nasdaq and AMEX-traded firms for the period 2015–2019 is used. First of all, we show that digitalization per se has a mitigating impact on the agency conflict. Shareholders become more active, albeit not more hostile towards management. Secondly, we have identified the strongest impact in such sectors as information technology, communications, finance, and healthcare. These are the most significantly impacted by ecosystem-based business model innovation. We conclude that digitalization and ecosystem-based business models are mutually reinforcing in mitigating the principal-agent conflict.