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Technology Stocks : Cisco Systems, Inc. (CSCO)

CSCO 74.59

+0.3%

Jan 23 9:30 AM EST

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To: Lizzie Tudor who wrote (63340)	3/15/2003 7:50:27 PM
From: hueyone	Read Replies (1) of 77400

I disagree- first of all, why were arguments about the amount of rank and file grants heard at all, if it isn't "FASB's job"?? Many arguments were presented to the FASB by letter during the comment period, some by hi tech professionals like you, that have no absolutely no relevancy to the question of whether stock options are a legitimate expense and how best to expense them. Simply making or presenting an argument to the FASB does not in itself make the argument germane to the FASB decision making process. I challenge you to show me any "finding" by the FASB where the FASB has made a subjective, value judgment regarding how many options are a good thing, who should get them, and whether options are good or bad. Do you seriously think that the United States of America has put the FASB in charge of social policy and compensation policies for corporations? I mean, come on Lizzie; the FASB is not the Russian Politburo of the 1960s. I believe the entire motivation for options expensing is a kind of revenge for the excesses of the bad companies in the 90s who are now gone for the most part. Individuals feel "ripped off" and govt doesn't want it to happen again. THAT is the true motivation for options expensing and everyone knows it... Uh huh, right. Then how do you explain the fact that the independent FASB came to the same decision to recommend expensing options on the income statement in 1993/4, long before the bubble and the subsequent crash? How do you explain that expensing stock options would be consistent with the reporting requirements for every other kind of equity based employee compensation that is already in place? The FASB's logic for recognizing stock options as a compensation expense has been consistent and has not changed over the last decade. Regards, Huey

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