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


To: RetiredNow who wrote (57692)2/19/2002 4:06:57 PM
From: Stock Farmer  Respond to of 77400
 
I'd rather be John ;)

Frankly though, you are absolutely right. If companies were forced to account properly for stock option compensation, many would be discovered as less than profitable.

And would be forced either into profitability or out of business. Through a variety of means.

And I further agree that those companies which have relied on extravagant option compensation to the over-enjoyment of insiders versus the benefit of shareholders... well they will suffer.

But there are other companies who have been using stock options more effectively. These (and their employees) should not be punished for the abuses of the tech wizards.

I think in the end we arrive at the same place: the days of huge option grants for everyone but the most key employees are over. Or soon to pass.

Those companies who are not profitable at the real cash cost of labor should not deserve to persist merely because there's a mostly clueless rug under which to sweep the majority of their compensation cost.