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To: Oeconomicus who wrote (145050)	8/8/2002 11:53:38 AM
From: Bill Harmond	Read Replies (2) \| Respond to of 164684

Not yet, but making some progress. I agree about deception. I just don't have my arms around the options issue yet. Seems that the stock market has more to do with the real costs of options than anything. How do you account for the market in advance?

To: Oeconomicus who wrote (145050)	8/8/2002 2:31:32 PM
From: GST	Read Replies (1) \| Respond to of 164684

CSCO could just as easily sell the options at the time of issue on the open market -- and it would be recorded as income no matter what happened to them after they were issued. There would be no adjustment made at the time they are exercised. It makes no difference whatsoever. By giving them to employees instead of selling them, the exact same principle applies. You gave the employee something in return for working for the firm. That is called compensation and it has the same reality as if you had sold those options on the market when issued. There is no way around it -- and it is only a matter of time before the lying stops.