KP,
Let me take a quick, albeit weak stab, specifically wrt to CSCO. Cisco is still trading at where it was last summer. The only folks that are underwater are those hired in the past few months and I suspect that most consider this a temporary set-back. I for believe that CSCO will be the first to bounce.
Second, now that CSCO's valuations are back down again there is even more reason to attract great people - in fact all large established tech companies will have a much easier time.
1) VC will be tigher to start-ups will have a more difficult time
2) Weak companies will have to let folks go and employees know this and will be looking for stronger established companies
3) CSCO share price is down = potential for greater gains. Much easier to get to a double at $380B cap than at $550B cap.
Like investors, employees will gravitate towards the stronger, established companies. And finally, if start-ups will have a more difficult time getting VC, going public, and winning investor approval then employees will be far less likely to leave a CSCO, NT, LU, ORCL, SUNW, HWP, etc... stock options or not.
Just an opinion. I'm sure there are others. Good subject!
OG |
