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To: geode00 who wrote (16420)	8/6/2002 3:08:56 AM
From: Don Lloyd	Read Replies (1) \| Respond to of 42834

geode00, Heard someone pontificate about this today. What about getting rid of options and simply granting stock outright? That way, you get rid of the complications of options like underwater ones and it's clear what the value of the grant is on the day you give them. They would simply be like a bonus promised or given for completion of XYZ tasks or upon achievement of a stock price or whatever. The guy also said executives should not be able to sell while they were still with the company although that doesn't seem like a good idea. I believe that direct stock grants are already expensed. This means that reported earnings would understated by the phony accounting expense. In addition, I believe that the real cash flow of the company, and the risk/reward situation of both the employees and the shareholders are improved with option grants, as opposed to stock grants. However, that may or may not prove to be true. Regards, Don