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Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?

To: GVTucker who wrote (41307)	10/23/2000 12:31:13 PM
From: The Phoenix	Read Replies (2) \| Respond to of 77400

I think we need to get clear on terminology here. You're using cost as the cost basis for each option? Or the price at exercise? The expense to the company upon exercise is what??? The difference between cost basis and exercise price? If so, explain to me how this is a real cost. I see the dilutive nature and the opportunity costs but I don't see a real cost issue. I see a tax gain...but not a real cost. Your point about compensation expense is an important one - but at issue is the true cost of this compensation. It appears that we're assuming that the cost of these options is open market costs. I'm not sure that that is how these shares are accumulated. Perhaps you can help clarify.