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To: Raymond Duray who wrote (19230)	5/21/2002 10:08:03 PM
From: Don Lloyd	Read Replies (1) \| Respond to of 74559

Raymond, There is no question that options grants are out of control, but the case for their existence is real even on a purely prospective cost basis, ignoring any question of rewards or an alignment of interests. The problem is that poor management is so operationally and strategically costly to shareholders, and so common, that the compensation costs are often a footnote in significance. Almost anything a shareholder can pay that improves the chance of recruiting and retaining successful management is usually cost effective. However, there is also a high likelihood that the highest group of compensated management is also among the most incompetent and untrustworthy. In the end, there is a very competitive market for proven competent management, or even the possibility of same. No rules or regulations can change this. Regards, Don