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Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 78.16+0.2%Dec 26 9:30 AM EST

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To: Amy J who wrote (63006)2/7/2003 8:52:45 AM
From: hueyone  Read Replies (2) of 77400
 
SOP% = Total Stock Option Pool percentage is reasonably fixed.

That statement above, which you made multiple times, simply does not match up to the stats---(although you did not clearly define SOP%.) I already posted information to you demonstrating that there has literally been an explosion in the use of options over the last 15 years. How can you justify continuing to post that option use is reasonably fixed? Precisely because there is no accounting for stock options, there are no standards. And the degree of stock option abuse is both increasing and accelerating imo. Sigh. Here is the information again:

1. That stock option overhang ((a measure of outstanding options plus options authorized)/shares outstanding), has doubled over the last decade:

businessweek.com

2. That stock option overhang has almost quadrupled since the early eighties.

ceonewswire.net

3. That CEO pay buoyed by steadily increasing options grants has grown from 40 times the average workers pay in 1980 to roughly 515 times the average workers pay by 2000:

e-insite.net.

4. That the pace of rising CEO pay has accelerated in the last decade, moving from 100 times the average workers pay in the company to over 500 times the average workers pay during the 1989 to 2000 year period:

levin.senate.gov

5. That the value of stock options grants, partially due to increasing grants of options, has increased twelve fold since 1993:

marketwatch.com.

6. That the average stock option overhang for tech companies now far exceeds even what liberal minded compensation consultants would say is an optimal level to increase shareholder value. At the end of 2001, stock option overhang for tech companies was about 66% than WatsonWyatt's supposed "sweet spot".

cfo.com

7. And that far from being any standards, some companies, like Siebel systems for example, have stock options overhang that are triple that of the average company in the tech sector:

Message 18491021

Regards,

Huey
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