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


To: Jorj X Mckie who wrote (60733)8/6/2002 9:13:32 PM
From: Lizzie Tudor  Read Replies (3) | Respond to of 77397
 
JC also said that it is in America's best interest not to expense stock options. Ummmmm, What?

I actually agree with him, Jorj.

I don't think the black sholes method of expensing options is accurate, it overstates, sometimes dramatically- just ask people with cisco options that were worth millions in 2000. If the politicians were so concerned with accurate financials, they would be against this approach, I fear the entire exercise is a politically motivated move to "soak the greedy CEOs".

And options grants are a different incentive that just payout of cash. I have a hard time with people that pretend not to see this. Options create value for companies that issue them... cash pay packages drain it.

Everytime politicians get involved with equities they screw things up- just like in the mid 90s when they started taxing options gains at exercise... I could be wrong but thats the only time I can think of when people are actually taxed to buy stock.
L