SEC EXTENDS COMMENT PERIOD ON NYSE'S PROPOSED AMENDMENTS TO ITS SHAREHOLDER APPROVAL POLICY ON STOCK OPTION PLANS

*See Memorandum to Investment Advisers Committee No. 37-98 and SEC Rules Committee No. 120-98, dated November 24, 1998. [10618] January 5, 1999 TO: INVESTMENT ADVISERS COMMITTEE No. 1-99 SEC RULES COMMITTEE No. 1-99 RE: SEC EXTENDS COMMENT PERIOD ON NYSE'S PROPOSED AMENDMENTS TO ITS SHAREHOLDER APPROVAL POLICY ON STOCK OPTION PLANS ______________________________________________________________________________ The Securities and Exchange Commission recently issued a notice in which it extends until Monday, January 25, 1999 the comment period for the New York Stock Exchange’s proposed amendments to its shareholder approval policy on stock option plans. As you already are aware, the NYSE’s amendments propose to provide a workable definition of the term “broadly-based” plans, which would focus on employee participation, rather than employee eligibility, and would be designated as an exclusive test, rather than a non-exclusive safe harbor.* Barry E. Simmons Assistant Counsel Attachment