This responds to Taking Options on a Daredevil CEO

As pointed out for financial firms, the use of restricted stock has also increased in most other public companies over the past ten years. It is an executive retention tool that helps ensure option compensation when the stock performance has a little or no payout under the regular stock option plan. As noted, restricted stock does have a tendency to reduce risk taking.

Therefore, it would be interesting to determine the use of restricted stock in the 69 companies involved in the study. Specifically, the dollar amount of the stock grants in the regular stock option plan and the dollar amount of the stock grants in the restricted stock plan as a per cent of salary, and its subsequent impact on the original risk taking findings of the study.

Jack Bucalo

Retired CHRO

Fiserv, Inc.

Washington, Ill.