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

To: Wyätt Gwyön who wrote (47590)	1/30/2001 8:14:16 PM
From: The Phoenix	Read Replies (1) \| Respond to of 77400

Mucho, The stock market is a different place these days - as is the economy. Prospects are looking for salary first and options second... Options are an incentive and are worthless when you get them... they are intended to provide employee's with an added incentive by allowing them to particpate in the success of a company. I don't think any employee will ask for "more of the green stuff" if the stock isn't trading well... they may leave the company and soon they'll find, given market conditions, that the grass aint' any greener anywhere else. The message is that things are a bit more normal than it has been in the past few years but make no mistake employee's at most large high-tech companies are paid very well. The options are a form of incentive - nothing more. SO to answer your question - if Cisco didnt' give the employee's any more options -EVER - some employee's would leave. The would leave for lower salaries at other companies with hopes of making it big with options. They would find that the options were worthless and in effect they left a higher paying job for a hope and a prayer. I'm not making this up either... this is the same thing that occurred with the internet boom... folks left software companies in droves for the dream of riches... I was working closely with Microsoft at the time and I witnessed the exodus. When these start-up companies failed they all went back "home". So, while you're right - that today options are used a form of incentive in the high-tech world - they are far less valued today than perhaps they were a year ago... and the longer the market trades sideways the more pronounced this effect will be. Even today salary and benefits like health and bonuses are being more heavily weighted than are options. Of course there are exceptions but these exceptions are becoming fewer. OG