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Technology Stocks : Cisco Systems, Inc. (CSCO)

CSCO 77.02

+3.3%

Jan 26 3:59 PM EST

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To: hueyone who wrote (63348)	3/16/2003 1:16:09 PM
From: Lizzie Tudor	Read Replies (2) of 77400

bury your head in the sand and pretend the expense is not there I have said repeatedly that I agree that options cause dilution which should be reported on in some way. You are trying to call an "opportunity cost" which is grossly exaggerated for most high growth companies (due to some options valuation metric which is intended to measure risk) as a real expense which it is not. This is even if there was a market for employee stock options, which there isn't. Don't bother trying once again to tell me there is a real expense because I have participated in plenty of P&Ls for engineering depts of 50 or more people- many of which compensated folks almost entirely with options and this caused absolutely no money to fly out the door. Quite the contrary in fact, when we wanted people to work their asses off, but we had no money to pay them, we would issue options grants, in some cases knowing full well they would expire worthless because the stock was overvalued. Almost every article I read on this options expensing issue has the term "corporate governance" strewn all the way through it.

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