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

To: ahhaha who wrote (60993)	8/9/2002 3:35:03 PM
From: GraceZ	Read Replies (1) \| Respond to of 77397

Nobody knows what its like to be an owner, they are all stuck in jobs. Back when I started my business I remember all my friends saying things like, "How can you deal with the uncertainty? You never know what you are going to make." I'd say that in fact I liked it. In a year where I did well I made a lot more money then I would do the same thing for someone else and in a year when the business didn't do that great I made only a little less. I had the tendency to live as though I made that lower base level. So the excess I made in the good years was more like a bonus or dividend payment. Plus in a bad year I tended to work harder to be efficient, cutting costs and in the fat years I tended to put a lot of money back into the business. Oddly enough it was a great motivator to have these wide variations in income. This is exactly why companies started using these incentive options. A guy I used to work for told me years ago, nobody ever got rich just working for someone else, if you want to get rich you have to work for yourself. So imagine you are a key employee in a high tech firm that has done rather well. You think maybe you'd like to go "out on your own" get control and make a pile. The options give people a sense of ownership, a reason to stay working for someone else. It works out great for the company as well because it means that the compensation they pay when times are bad is at the lowest level without having to ask for salary concessions or lay off key employees. Then when times are great and there is a lot of pressure for people to leave, they are less likely to because they are making a lot more money then during the bad times.