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

To: Dave who wrote (47721)	2/1/2001 11:46:55 AM
From: The Phoenix	Respond to of 77400

Dave, GV was talking about taking inordinate risks... not repricing. I know repricing happens although it hasn't happened to Cisco and I do believe there are some significant issues when it comes to repricing for a company that has used pooling. I do believe there is some tax law that would make prohibitive for Cisco to reprice - I just remember having this conversation with someone that knows this stuff much better than I. Anyone have insight? Maybe it wasn't pooling... maybe it was the tax benefit issue. not sure. But I don't think Cisco can effectively reprice nor would I expect it. OG

To: Dave who wrote (47721)	2/1/2001 11:49:54 AM
From: GVTucker	Read Replies (2) \| Respond to of 77400

In the end I think that given the current tax law, stock options make sense for employees that otherwise would draw a seven figure salary. For other employees, it probably is a wash whether they're compensated by salary or options, although I would tend to favor salary with a stock purchase plan for ownership. With stock options for nonexecutive employees, too many people get far too heavily weighted in their employers' stock. The caveat that I would make is that a company should adopt in its bylaws a prohibition for repricing options. I doubt that any corporation has taken such a step, even though it is in the best interest of shareholders.