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Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 76.22+0.1%Nov 24 3:59 PM EST

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To: RetiredNow who wrote (50391)3/26/2001 1:56:57 PM
From: Wyätt Gwyön  Read Replies (1) of 77400
 
In addition, if he drives the stock price down enough and then gives out more options to his employees, then they have the chance to get motivated from the good upside potential again

The problem here is that repricing options, or issuing new options at lower prices, dilutes future earnings for current shareholders. Shareholders in such a scenario are penalized not just with a (perhaps) temporary paper loss, but with a permanent dilutive addition to share count.

Why not just pay employees what they are "worth" in cash? Cash payment commensurate with talent/contributions should provide sufficient motivation.
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