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

To: Dennis Doubleday who wrote (47711)	2/1/2001 11:19:12 AM
From: The Phoenix	Read Replies (1) \| Respond to of 77400

DD, I have no fundamental disagreement with your comment in general except... by removing all downside while leaving huge upside intact. I think the downside is huge for these guys. Heck, their salaries probably don't even cover their mortgage payments. In the case of most line employee's they make a good salary and the options are indeed incentives.. but as GV points out in the case of exec's the "expectation" is that options are part of compensation. If the company doesn't execute the exec. doesnt' get compensated well enough to support his standard of living. That's pretty good downside IMO. For me I'd rather see an exec. paid $250K and options to execute as opposed to a $10M salary - execute or not... and ... well... if the company does tremendously well - then I'm winning as a stock holder anyway. It seems to me everyone is so worried about "the other guy" making more money than they are. I think as investors we need to get over it. Execs that are good (that make me money) deserve to benefit. OG

To: Dennis Doubleday who wrote (47711)	2/1/2001 11:22:04 AM
From: GVTucker	Read Replies (1) \| Respond to of 77400

Don't forget the fact that when things go bad, options often get repriced, thus lessening the risk to employees and increasing the risk to shareholders.