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Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 76.26+0.1%12:26 PM EST

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To: Wyätt Gwyön who wrote (50393)3/26/2001 4:13:24 PM
From: RetiredNow  Read Replies (1) of 77400
 
I agree. However, the majority of options allocated in the last 2 years are worthless now and are likely to never get exercised. So in effect, a new allocation now is not going to result in an incremental dilution over the long term.

I wish Cisco would just pay with cash, especially now that they are no longer a hyper growth company. It made sense when they could snag the best and brightest with options that would make them millionaires. But now, that their options aren't that appealing and probably won't be since, making a million dollars won't be likely for the majority of people that Cisco hires now, the only way they'll really be able to attract the best is to may good cash salaries.

I think it will take a few years for management to realize this. I think the realization will come when they start looking around and realize that the top 10% have left. Then they will see that no one cares about their options anymore and they'll be forced to pay market rates in cash.
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