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

To: Dave who wrote (47535)	1/30/2001 1:14:26 PM
From: Wyätt Gwyön	Respond to of 77400

Dave, The compensation recognition for the employee would be the difference between the strike price paid by the employee, and the market price for the stock. So if the strike is 10 dollars and the stock is 38, then the compensation to the employee is 38 - 10 = 28 (the ten dollars is paid to the company). I am not sure of the details relating to AMT, but I have read a few of those horror stories about MSFT employees.

To: Dave who wrote (47535)	1/30/2001 1:15:23 PM
From: The Phoenix	Read Replies (1) \| Respond to of 77400

Dave, When an employee of a company exercises options they pay the company the cost basis + taxes. The company then issues the shares to the employee or sends them to their brokerage. The employee has already paid income tax and yes, they could also be exposed to AMT. Mucho Maas... you're making an issue of free cash flows... could you elaborate why we should be interested in such an issue and how you believe the tax benefit to Cisco should be of concern... Of course on Cisco's consolidated statement they still show the tax liability so from an earnings perspective. OG