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, February 3, 2012).

1. How would you feel about this compensation package if you were a shareholder?
2. What are the implications for moral hazard, efficiency, and risk-sharing?