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Technology Stocks : Cisco Systems, Inc. (CSCO)

CSCO 76.85

+1.0%

3:59 PM EST

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To: RetiredNow who wrote (64595)	9/15/2003 5:14:34 PM
From: Kirk ©	Read Replies (3) of 77400

Hi Pete, they aren't marketable today, only because they haven't been structure to be marketable on a secondary market. Coca Cola started to do this, but then backed out. The bottom line is that there is no reason why they can't be sold by employees, even before they have been exercised. All they would need is for the company to structure the option in such a way as to make that possible and then contract with another firm willing to make a market in those options. Who would be stupid enough to buy a stock option that can't be exercised for 5 years and it depends on a third party to not quit her job once she sold the option? After all, the whole idea of giving her the option was to keep her for 5 years. As a shareholder, I vote for granting options to good employees in exchange for dilution of my shares with the expectation that the employee will be motivated to increase the value of my current shares enough to overcome the dilution. Why is this so hard for folks to understand? It is MY money that is given away by the company. (It should ONLY grant options on authorization of a shareholder vote which I believe was made a law awhile back.) There was a problem in the past when the companies were giving my money away without my voting on it. Kirk PS MSFT is not much of a growth company these days and options were worthless to motivate employees so they changed programs. Good PR for them to expense something they won't use AND it hurts their competitors.

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