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To: Madharry who wrote (160039)	5/24/2004 5:29:06 PM
From: Lizzie Tudor	Respond to of 164684

so is your issue the fact that executives and employees are making too much as a result of options or that you as a shareholder are being diluted? Its not like that somebody with 100 pt rise in ebay stock for their options is really costing you $100 per share. Otoh if an executive at ebay is taking home $40mm/year that is probably excessive.

To: Madharry who wrote (160039)	5/24/2004 7:15:03 PM
From: Don Lloyd	Respond to of 164684

Madharry, That is a very large assumption if you look at the absolute dollar value of the spread between the options exercised and the price at time of exercise and compare it to dollar earnings it is usually not a trivial number. You've hit upon the problem. Shareholders have given up ownership, not a constant amount of dollars, but an equivalent amount of dollars that tracks the stock price. It would be a strange expense indeed that leaves the shareholders better off every time it increases. Regards, Don