*Earning Options*

/To the Editor:/

Thomas G. Donlan is absolutely right that "corporate stock options are
failing to align the interests of employees and shareholders,"
(Editorial Commentary, July 22)
and I also agree that Warren Buffett is wrong in claiming that options
are just another form of employee compensation. Buffett ignores the
point of options -- that they are a form of compensation provided by
shareholders, not by the company itself.

Andrew Odlyzko
University of Minnesota
Minneapolis