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Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 76.04-0.3%Nov 26 3:59 PM EST

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To: The Phoenix who wrote (47589)1/30/2001 7:26:28 PM
From: Wyätt Gwyön  Read Replies (1) of 77400
 
Gary,

So then your assumption is that Cisco pays their employee's less than the competition and that they make up for this by using options?

No, my assumption is a little different. The reality is, all the other IT equipment companies and software suppliers do the same thing. But that doesn't mean it's not compensation. And if employees stop anticipating an options windfall because the stock is no longer a highflyer, they will want more of the green stuff. Microsoft is a case in point.

Think of this way: if Cisco didn't give their employees ANY more options, EVER, what cash compensation would be required to retain all of the employees?

This is not specific to Cisco. You can repeat this thought experiment on any other company as well.
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