Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: GVTucker who wrote (47733)	2/1/2001 4:04:11 PM
From: John Koligman	Respond to of 77400

Looks like Amazon is doing it per today's NY Times.. Regards, John Amazon Offer Links Profit to Share Price By BLOOMBERG NEWS WASHINGTON, Jan. 31 — Amazon.com announced today that it was offering to lower the price of existing employee options, making it subject to an accounting rule that will directly tie its financial results to fluctuations in its shares. The repricing offer, filed by the company with the Securities and Exchange Commission, lets employees swap existing options for new options that have a lower exercise price. Many technology companies, faced with plunging shares, have made similar moves for the stated reason of retaining employees whose options would otherwise be worthless. Other companies, from Microsoft to Sprint, have found ways to award new options without triggering a new accounting rule on repricings, though. In contrast, Amazon.com, which is based in Seattle, will become one of the first major issuers of employee stock options to fall under the rule, which can punish earnings or worsen losses when a company's share price rises. "You would have humongous expense charges" at companies like Cisco Systems if they had followed this rule during the last five years, said Arthur Kroll, chief executive of the KST Consulting Group, a New York compensation consulting firm. Cisco shares have increased more than ninefold since the beginning of 1996. At Amazon.com, if shares rise the resulting charges would widen the company's net losses, which totaled $545 million for the fourth quarter of 2000. Amazon.com officials did not return telephone calls seeking comment.