Ghors: "the destruction of capitalism" ... while I agree the idea is unlikely fly, it would not be the "the destruction of capitalism". There are many instances when shareholders should and knowingly approve ISO.
One good example that comes to mind is Mr. Jobs' return to Apple. As I recall the deal, it was $1 wages and the rest in ISO with the full consent (actually at the request) of shareholders. A good deal all around.
I think CEO's SHOULD show "the need for options" and when it is justified, they will get them. What really bothers me is excessive ISO due to the way the system is setup (default "yes" vote) and too many ignorant and/or apathetic shareholders.
Cheers,
Corp_Buyer