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Technology Stocks : Cisco Systems, Inc. (CSCO)

CSCO 71.08

+0.1%

Nov 7 9:30 AM EST

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To: Lizzie Tudor who wrote (63758)	4/29/2003 11:45:33 PM
From: RetiredNow	Read Replies (2) of 77397

Hi Lizzie, I think you may be underestimating just how many smart, heavily degreed, seriously techie people there are out there searching for jobs. I honestly believe that a company like Cisco could get rid of stock options as a form of compensation and not lose very many people. First of all, most people will stay on, because there's no place else to go. Second, most people don't really believe in options anymore anyway. 3 years of nothing happening really puts a damper on stock option dreams. Third, they could offset the bad news of discontinuing the options program with a bump in salaries to keep people happy. They certainly don't have to decrease salaries. Just a discontinuation of the options program would do the trick. Plus, one thing they do at my company is that the managers like myself are allowed to give out cash bonuses for project successes. Cisco could do something similar to keep people motivated. Bottom line is that there are lots of ways to keep people motivated and options are just one of them (the one they should get rid of).

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