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Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 78.020.0%9:30 AM EST

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To: GVTucker who wrote (65459)5/13/2004 11:45:52 AM
From: Lizzie Tudor  Read Replies (2) of 77400
 
well all the proposals on the table plan to disclose all options expenses I believe. So more disclosure is already in the cards, or more visible disclosure.

In my view Chambers is absolutely right when he says investors will proforma these things out in the income statement so to me, expensing the top 5 is no different than expensing all. I don't want expensing for clarity, because I think options are not a cash expense and therefore calling them that distorts the picture of a companies true performance. But I do want fewer options at the top and expensing the top executives options should achieve that.

I still say that with the lowest corporate tax receipts in 70 years as % of GDP, with corporate rates fairly high, and cash flow basically double earnings at the internet companies- we have a situation where earnings are distorted heavily already to the downside. Earnings should be roughly equal to cash flow but aren't. Options expensing just distorts the picture further.
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