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Technology Stocks : Cisco Systems, Inc. (CSCO)

CSCO 77.80

-1.9%

Dec 12 9:30 AM EST

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To: willcousa who wrote (61149)	8/29/2002 3:31:59 PM
From: hueyone	Read Replies (2) of 77400

I know what the advocates want done - I just don't see the great value in it. You don't see any value in changing the rules that would discourage management from giving away the company to insiders without accounting for it? Granting excessive stock options goes hand in hand with no accounting for stock options. The value of stock options have grown twelve fold just since 1993. CEOs pay has gone from 100 times the average workers to 500 times in the last decade. Vesting periods have shortened from four years to three years. Meanwhile, executive ownership of stock has actually declined as they churn the options for cash. Stock options have mushroomed out of control and Cisco is a big offender. Source for executive pay increase: levin.senate.gov Source for shorter vesting periods: e-insite.net That above article also includes this statement: One well-publicized case is John Chambers, CEO of Cisco Systems Inc., San Jose, who is conspicuously absent from this year's pay list. He had no bonus for the fiscal year ended July 31, 2001. In May 2001, he requested a $1 annual salary because Cisco was performing poorly. But he also got 6 million options, a 50% increase over the previous year, according to the company's proxy statement. Source for 12 fold increase in the value of options: marketwatch.com Best, Huey

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