Executive Pay

* The May 10 article about executive compensation points out that the growing difference in compensation between executives and workers is primarily due to stock options.

Allowing the board of directors of publicly traded companies to administer stock option plans is the real disgrace. It is a most immoral, unethical and unfair reshuffling of other people’s money. Guess who pays for it? The public owning the stock! An exercised stock option dilutes the value of the existing stock, as it floods the market with additional shares, just like printing more money causes inflation.

Compounding the problem is that the corporate executive is the first to know when his company is in trouble and he will be bailing out as the market peaks. The middle class, who now save for their retirement typically through a mutual fund, will see their nest egg evaporate when the fat cats cash in.

IVAR SCHOENMEYR

San Juan Capistrano