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Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 77.04-0.5%3:59 PM EST

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To: Lizzie Tudor who wrote (57670)2/19/2002 1:58:42 PM
From: Stock Farmer  Read Replies (1) of 77400
 
Good point. Mindmeld addressed fairly well.

I'm not against competitive compensation. I'm against paying someone $300K (salary + options) and being measured financially as if I'm only paying them $150K (salary) & getting a 50K tax credit from the IRS to net out to effective salary of $100K.

If a business is only profitable if it can employ folks for $100K but it really takes $300K to do the job, then as a shareholder I'd rather not touch it with a ten foot pole.

Furthermore, if I somehow was to become a shareholder of a business where employment cost is actually $300K and I found out that management was complicit (even passively, through inaction) of duping me into thinking the cost was $100K... well I'd be livid. At me as much as at them. Buyer beware.

But if I then heard they were actively lobbying lawmakers to keep me & folks like me happily in the dark (in the guise of avoiding shadows cast by bright illumination)... well, then I'd be asking for their heads.

Particularly if they were the beneficial recipients.

But that's just my opinion.

John
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