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Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 74.40-1.4%3:59 PM EST

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To: RetiredNow who wrote (64257)7/9/2003 9:03:43 AM
From: Don Lloyd  Read Replies (3) of 77400
 
mm,

If equity-based compensation is such a priority to Cisco, why don't they just give out stock instead of stock options? Because they'd have to expense it, that's why....

It might have to do with the fact that even though expensing stock or option grants or not has NO effect on free cash flow, which is indeed one of the arguments that supporters of expensing often use, the actual option grants themselves DO provide substantial real free cash flow to the company AND its shareholders, and it remains to be seen just how company managements that drop options completely will justify this obvious violation of fiduciary responsibility.

Regards, Don
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