Subject: File No. S7-27-04
From: Mel Gates
July 10, 2004
I have two points which I would like to make in regard to executive
trading.
1. I understand that there is a move afoot to require that companies
fund
the stock options of the officers and board. I don't know the status of
this, but I would like to recommend that we move in this direction.
2. I would like to go a little further in this area. I have watched
stock
prices plummet as executives dump their options only to pick up cheaper
options. A point in mind is Larry Ellison of Oracle. There may be a
reporting requirement for people who are selling their options in large
amounts to advise their intensions well ahead of their sale. However, I
don't
think this information is readily available to everyone and I would like
to see a letter to stockholders stating such intensions. Non-compliance
would invoke penalties such as being completely from receiving options
for
a period of time.
I thank you for listening to me and perhaps I have not uncovered any new
ground.
Mel Gates
14 Redstart Path
Hilton Head, SC 29926
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