(FORTUNE Magazine) – EXECUTIVE LIFE/Cover Story 36 WHY GRADE 'A' EXECS GET AN 'F' AS PARENTS The qualities that make for corporate achievement -- intensity and single- mindedness -- are often the opposite of what's needed to be an effective mom or dad. That's why successful executives have more trouble raising their kids than all but the very poor. Some parents show how to avoid the worst mistakes. by Brian O'Reilly

43 REPAIRING RELATIONSHIPS WITH YOUR KIDS

AIRLINES 50 HOW AIRLINES WILL LOOK IN THE 1990s Takeover battles are changing the shape of this industry. The future of fares, service, even safety standards, will depend on how the current turmoil plays out. by Kenneth Labich

58 THE WORLD'S BIGGEST CARRIERS Deregulation is shaking up the tidy world of the international carriers. Even Europeans have to compete now. by Wilton Woods

FORTUNE PEOPLE 62 THE YEAR'S 25 MOST FASCINATING BUSINESS PEOPLE Let four women and 21 men -- among them a chicken farmer, a bus company executive, a defrocked S&L boss, a U.S. Senator, a shopaholic, the daughter of an undertaker, the chairman of Sony, and the President of Mexico -- loose on the world for 365 days. This is what happens.

COMPETITION 74 GETTING HIGH TECH BACK ON TRACK Without waiting for a government policy, smart managers can do plenty right now to restore America's edge over rivals who are winning markets worldwide. by Joel Dreyfuss

POLITICS & POLICY 79 HOW GEORGE BUSH DID AS A FRESHMAN Give the old Yalie a gentleman's B-. After a slow start, he ended up with a high mark in foreign policy. But in the budget-balancing course, he failed to finish his assignment. by Lee Smith

CORPORATE PERFORMANCE 82 THE HOTTEST HIGH-TECH COMPANY IN JAPAN Kyocera makes ceramic housings for semiconductor chips, and it is far from a household name. What the Japanese most admire about this outfit may surprise Americans: They like its U.S.-style enterprise and innovativeness. by Gene Bylinsky

89 COMPANIES TO WATCH

COMPENSATION 93 THE TROUBLE WITH STOCK OPTIONS They're more popular and lucrative than ever. But they don't do what they're supposed to do, and the cost might shock stockholders -- if they knew it. by Thomas A. Stewart

INNOVATION 97 PRODUCTS TO WATCH

AUTOS 99 NISSAN'S BOLD BID FOR MARKET SHARE Its U.S. gamble on striking style has paid off in specialty cars. Next comes a radical new family sedan whose success is crucial to the company's global strategy. by Alex Taylor III

NEW MARKETS 103 CAN YOU MAKE ANY MONEY IN RUSSIA? Not much, not yet. Sure, the Malta summit marks the end of the economic Cold War. But Westerners seeking big profits in this millennium aren't likely to find them. by Lee Smith

DEPARTMENTS 4 EDITOR'S DESK 7 INDEX 12 NEWS/TRENDS Which billionaires did best in the 1980s; the Iron Curtain parts on Soviet trade; ah, springtime in Budapest; banks are being cautious about Second World debt; what's hot and what's not; sniff before you sip; drive-in newsstands; let 'em eat Wheaties; and more.

17 FORTUNE FORECAST The U.S. economy will catch a second wind in the coming year -- and so will profits, say two Morgan Stanley economists. by John D. Paulus and Robert S. Gay

23 PERSONAL INVESTING There are some gems to be found in a rough bond market. by Andrew Evan Serwer

Also: IBM -- a screaming buy or a sucker's bet, S&Ls with a winning formula, and Portfolio Talk with Hugh Johnson of First Albany Corp.

30 LETTERS TO FORTUNE The price of a widening trust gap, the ''vision'' thing, a call for revolution, and more.

109 BOOKS & IDEAS National service is popular in Washington, and the idea of young Americans toiling for their country is pleasing. But is a federal program the best way to do it? by David R. Henderson

111 KEEPING UP Protecting the Democrats' honor, the latest media math, more men discover sex, and other matters. by Daniel Seligman

! ABOVE: John Harding photographed Darren Butler and his father, Bob, a Chevron executive, at a Little League soccer tournament in Buena Vista, California.

COVER: Photograph by Rita Maas; card lettering by Tim Girvin.