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Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 78.030.0%Dec 24 12:59 PM EST

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To: Jorj X Mckie who wrote (60744)8/6/2002 10:30:24 PM
From: Lizzie Tudor  Read Replies (1) of 77400
 
from my notes on the call, an analyst asked an option expense question-

Arianne Maler Dresner
Option expensing- why doesn't cisco do it when NT and others are volunteering now.

JC- he has very strong issues with this. It is stock option governance that is the issue.
What are the goals of option reform- accuracy, shareholder approval, repricing, options to all? Does the reform address these issues?

Cisco has done a good job with each of these.

top 25 at cisco get less than 6% pf total options. Intc, msft are similar.
Expensing alternatives are not accurate. Black Sholes technique gives 3.3 billion expense from last year.
Today-141mm for the same option plan, totally inaccurate. Having said this, Cisco will put expenses in reports, cisco has no problem with this.

Larry- we will be disclosing FY02 Black Sholes. Every qtr cisco will disclose Black Sholes calculations going forward.
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