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Technology Stocks : Cisco Systems, Inc. (CSCO)

CSCO 72.72

-2.3%

2:12 PM EST

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To: hueyone who wrote (60749)	8/7/2002 1:51:45 AM
From: GraceZ	Read Replies (6) of 77397

1) If options aren't a form of compensation, what are they? What the employee has done is accepted equity in place of compensation. Ownership instead of cash. Stock is merely fractional ownership of a company and it holds all the privileges and risks surrounding ownership, it is not a promise to pay. Whether or not that fractional share or option on a fractional share can be sold on the market and for whatever price is irrelevant. Equity belongs on a balance sheet not a P/L statement.

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