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Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 74.40-1.4%Jan 14 3:59 PM EST
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To: Don Lloyd who wrote (64258)7/9/2003 9:42:21 AM
From: rkral  Read Replies (1) of 77400
 
OT .. Don, re "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, ..."
That's mostly because many proponents believe FCF should be *operating* FCF, i.e., FCF from operating activities, excluding FCF from financing activities. I agree with them.

re ".. the actual option grants themselves DO provide substantial real free cash flow to the company AND its shareholders .."
Agreed, but it is FCF from financing activities .. selling call options and stock to employees.

re ".. it remains to be seen just how company managements that drop options completely will justify this obvious violation of fiduciary responsibility."
Huh? You just posted "expensing stock or option grants has NO effect on [edit: total] free cash flow", and I agree. So where is the "violation of fiduciary responsibility"?

Regards, Ron
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