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Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 78.32-0.1%Jan 30 9:30 AM EST

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To: The Phoenix who wrote (47788)2/2/2001 11:58:40 AM
From: bambs  Read Replies (1) of 77400
 
how about this?

instead of giving the options to employees they sold the options on the open market and gave the employee the proceeds from the sale as a bonus. Then the employee could buy the options back on the open market around the same price if they wanted to. What effect would that have on the accounting?

What does it matter if they give the options to employees or sell them on the market? If they print the shares later what does it matter. What is an employee going to do differently with the option over the long term that the person that bought the option on the open market would do?

The options exist. The options have a value. The cost of giving them is what they would be worth if they were sold on the open market at the time. That needs to be expensed in my opinion.

bambs
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