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Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 77.04-0.5%Dec 31 3:59 PM EST

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To: Kirk © who wrote (65455)5/13/2004 11:38:15 AM
From: rkral  Read Replies (1) of 77400
 
OT .. Kirk, re "I'm not exactly sure how they accounted for it, but I believe those "mathcing shares" could have been expensed as they were issued at the fair market value and nobody would object. "

Congrats on having the opportunity to get 50% value increase by just participating.

I'm sure the "matching shares" were expensed. I'm also sure they caused dilution .. just like employee stock options. So, if the scale of the programs were equivalent, your cash-for-stock-repurchase versus cash-for-dividends argument would apply there as well.

My original interjection to your post was just to point out that elimination of an employee stock options program would result in an increase in cash compensation -- not on a dollar-for-dollar basis -- not equivalently for all companies -- not equivalently to all employees -- not demandable in any economic cycle -- but some increase overall.

Best, Ron
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