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Strategies & Market Trends : Sharck Soup -- Ignore unavailable to you. Want to Upgrade?


To: Softechie who wrote (16600)4/17/2001 4:42:59 PM
From: DaiTN  Respond to of 37746
 
<< They don't have to pay for severance when employees leaving on their own terms.>>

Good employees who have many options and choices, who can find jobs with other firms, and who can leave on their own terms are the people CSCO can not afford to lose.

From the business stand point, I prefer to pay the severance and lay off the non-productive workers, rather than allowing good and productive workers to seek opportunities elsewhere because they are not happy with their compensations.

As you may know, options have always been the key for CSCO to retain good workers, and most of these options were issued above 50 bucks. CSCO has been losing good workers since last year, and the trend will continue if they don't act soon. Restructuring the option plans to retain good employees and buying back shares, are the best move for CSCO, especially when they can afford to do so with all the cash they have.