the interests of corporate officers with those of shareholders. such an alignment is an essential condition for maximizing the long - term market value of the firm. regrettably, some current issuance practices have not created the alignment of incentives that encourages desired corporate behavior. one problem is that stock options, as currently structured, often provide only a loose link between compensation and successful management. a company's share price, and hence the value of related options, is heavily influenced by economy - wide forces - - that is, by changes in interest rates, inflation, and myriad other forces wholly unrelated to the success or failure of a particular corporate strategy. there have been more than a few dismaying examples of ceos who nearly drove their companies to the wall and presided over a significant fall in the price of the companies'stock relative to that of their competitors and the stock market overall. they, nonetheless, reaped large rewards because the strong performance of the stock market as a whole dragged the prices of the forlorn companies'stocks along with it. stock or options policy should require that rewards reflect the success or failure of managements'decisions. grants of stock or options in lieu of cash could be used more effectively by tying such grants through time to some measure of the firm's performance relative to a carefully chosen benchmark. many corporations do tie the value of stock and option grants to relative performance, but most do not. to be sure, an untied option grant can be thought of as an option whose value moves with the performance of the corporation relative to the competition, coupled with a call option on, for example, the s & p 500 stock index. it can be argued that the latter is merely another form of compensation that helps firms retain valued employees. i am sure that is right, but does a compensation system tied to the overall stock market serve a company well? * * * let me now turn to option accounting. a stock option is a unilateral grant of value from existing shareholders to an employee. it is a transfer through the corporation of part of the market capitalization owned by existing shareholders. the grant is made to acquire the services of the employee, and presumably has a value equivalent to the cash or other compensation that would have been required to obtain those services - - what economists call the opportunity cost of employing those services. that value is obviously a function of when, and under what conditions, the option can be exercised. to assess the cash equivalent of the

their primary function, namely to collect funds from their owners and distribute it to borrowers. to be more precise, the main function of banks is to facilitate and finance activities associated with the supply of goods and services to the people ; more specifically “ real ” activities. therefore, financing activities through sharia banking are closely linked to real sector development. moreover, speculation and gambling, the main culprits behind the on - going crisis, are not tolerated. thus, by design, the islamic financial system can instill greater stability in an economy. and, if implemented correctly, the islamic financial system can provide an optimal risk management system. sharia financial system performance ladies and gentlemen, the potential role of sharia financial institutions in the economy has been discussed on numerous occasions. according to the banker magazine in 2007, sharia - compliant assets worldwide have grown by almost 30 % per annum in recent years. such growth outstrips most other business segments in financial services. in 2008, sharia financial assets worldwide reached $ 643 billion and are expected to exceed $ 1 trillion by 2010. in fact, there are currently more than 400 financial institutions offering sharia compliant products globally, including sukuk, which has created significant demand in the market over the last five years. countries like united arab emirates, saudi arabia and malaysia are competing to become centers of islamic finance. in such a competitive environment, indonesia also has a great opportunity to advance itself as the center of islamic finance. as the most populace muslim country on the planet, with a population of more than 237 million, indonesia is undoubtedly a promising market. since the establishment of its first islamic bank in 1992, the sharia industry in indonesia has exhibited relatively robust growth. sharia banking is in its infancy since the establishment of the first islamic bank in 1992, however, has demonstrated strong and steady growth. business volume has grown expansively, exceeding the growth rate of the banking industry as a whole. currently in indonesia there are three full islamic banks ( fibs ), 19 islamic banking units at conventional banks ( ibus ), and 92 islamic rural banks. as a whole, the industry is supported by 531 islamic bank offices currently operating throughout indonesia ( 288 fibs, 121 ibus and 92 rural banks ). the sharia banking industry has amassed total assets amounting to rp50 trillion ( usd 4. 2 billion ), or 2. 1 % of all bank assets in indonesia. this share has increased steadily from previous years :