Those options are under water now. The stock has fallen 50 percent so far this year, compared with the 8.5 percent drop for the Standard & Poor's 500 Index and IBM's 23 percent gain.
McNealy has realigned his sales force to focus on the healthcare, retail, automotive and energy industries. He wants to reduce inventory levels, trim more costs to bolster profit.
Meanwhile, he has Sun upgrading its servers with a fresh chip, dubbed UltraSparc III. The first ones came out in September, with top-notch models due this year. After months of struggling to get enough chips to fill orders, supply is improving.
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