Upper Saddle River, NJ – 26 January 2006 – If you have not already read the draft of a regulation by the Securities and Exchange Commission (SEC) provides for reporting executive compensation in public filings, you are likely in the near future. Since we have so many times in the past, media attention and public outcry about excesses have seen in the executive compensation in general, the reaction of the government brings in the form of new laws and stricter reporting requirements. Much of the recent media interest has apparently unearned premiums and stock-based awards, excessive benefits and value added focus, and increased the reward for the payment of taxes due. In response, the SEC announced last week that it has developed and is planning new rules that make information more transparent transactions, executive compensation on the grounds of their boards and compensation committees used adopt their decisions.

The requirements include disclosure of the following:

· Value of total compensation in the summary compensation table

Information · three year pay packages for executives, including Chief Financial Officer and Executive

· Value of interest on the shares (shares)

· Value of pension and retirement benefits

• All advantages and benefits, 000 in value (formerly 000)

The final rule may be broader than those that have been proposed. Enter the required information can certainly be a boon for shareholders and potential buyers of shares in a company. However, we believe there is a high probability that it is very dramatic and unforeseen consequences following:

1. Instead of a reduction in executive compensation, new reporting requirements in fact have the effect of the establishment of new baseline and higher compensation.

Historically, almost every time the government needs new information, or to define what a cap on the compensation he believes he has had the opposite effect, and actually looked like a new floor for the wage-fixing.

2. The value of compensation to other sectors of the economy, including private, profit-oriented businesses will be paid, and to a lesser extent, to Not-For-Profit (NFP)

These organizations are competing in the same market for qualified executives, and so they have a variety of programs that provide comparable levels of total compensation to recruit include successfully these individuals, the creation of new versions offer long-term incentives, Supplemental Executive Retirement Programme (SERP) and phantom stock plans. We also saw a huge increase in the use of incentives for private companies and high-stop shops, which were largely designed for the use of large publicly traded companies leveraged.

While many welcome the initiative taken in order to provide transparency in executive compensation information from rubbing the SEC, it is doubtful that this is the desired effect and the prevalence of reducing levels of total compensation that the government and critics instead. We expect the proposed changes will have the opposite effect, namely to justify and increase the levels of total compensation, with cuts in some serious cases. Only time will tell.


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