(Answered) In 2012 hewlett-packard co announced that its new chief

Management Studies

In 2012, Hewlett-Packard Co. Announced that its new chief executive, Meg Whitman ,would receive a salary of $1 and about $16.1 million in stock options, which are valuable if the stock does well (marketwatch.com, February3,2012). How would you feel about this compensation package if you were a shareholder? What are the implications for moral hazard,efficiency, and risk sharing?

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