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

To: Threshold who wrote (60783)	8/7/2002 9:57:04 AM
From: GraceZ	Read Replies (2) \| Respond to of 77400

Then argue against the number of options issued. This is a perfectly reasonable complaint. I always check to see how often a company goes to the well because it dilutes my ownership. Putting them in as an expense simply distorts current earnings. Everyone wants companies to expense them, but no one is arguing to have them come off taxable income. Why is that? If you tell me something is an expense at least let me not pay taxes on that expense.

To: Threshold who wrote (60783)	8/7/2002 1:46:04 PM
From: rkral	Respond to of 77400

OT ajonesy, re "...the risk only comes into play if one exercise the options and doesn't sell them immediately" There is *also risk before the exercise*. The employee expecting to receive option compensation usually accepts reduced cash compensation .. when compared to another individual with a similar job at a company that does not offer stock options. At least that's the theory .. and I wish someone would provide research data for this someday. One might say that the option employee has 'one bird in hand and three birds in the bush' while the cash-only employee has 'two birds in hand'. Just think of the combined cash and option compensation as similar to a sales person accepting both base pay and commissions. But option compensation is highly unpredictable. Sometimes it creates fortunes, as when a market bubble is expanding. Sometimes there is no reward at all, as when the market bubble bursts. It is a gamble. I consider option employees, as a group, who complain about their underwater options to be hypocritical. If they aren't willing to accept the downside risks of options, they shouldn't accept the upside rewards either. In other words, they shouldn't be gambling. IMHO this is a great option discussion going here. I just wish, from a selfish point of view, that it were happening on the thread I started last June at Subject 53027. Oh well, I can hope. Ron