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To: Jacob Snyder who wrote (43241)	2/6/2009 12:07:48 AM
From: Sam Citron	Respond to of 95515

Jerome, You have a good point. The financial penalty obviously must be much worse than the gains in order to discourage the executive from cheating. It seems to me that he is really stealing from all the other stockholders so he should be exposed to action from any and all such stockholders for theft essentially. Probably a shareholders derivative action is most efficient, although the process is not perfect and many attorneys also find it easy to steal from shareholders. What executive has actually gone to jail for options backdating? Should they, really? Is it really best for society to force the founder of a company to resign? I don't pretend to have the answer. But options are the lifeblood of silicon valley and elsewhere. They seem to be a good way of motivating employees, albeit sometimes with shorter-term incentives than might be ideal. The fact that the backdating was so widespread shows that the SEC was lax in enforcing the law for so long that everyone just thought they could get away with it. Sam