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

To: Amy J who wrote (62912)	2/5/2003 10:02:08 AM
From: GVTucker	Read Replies (1) \| Respond to of 77400

Amy, RE: So, your answer is wrong because it IGNORES MOTIVATION FOR GROWTH. You don't see stock grants in startup-land because: First of all, Amy, please note that I have never, ever proposed killing off options. I have proposed expensing them within GAAP, though. Secondly, your positives of option issuance and negatives of stock grants are all within the world of startups. My problem with options is with public companies. If a company has gone public already, the negatives that you cite for stock grants just don't exist. All of this is a problem within GAAP. And for a private startup, GAAP really doesn't matter that much, unless the startup is preparing to go public. That's because GAAP earnings are meaningless to a private company. All that matters is if you're growing the business and putting cash in your pockets. Yes, for a startup, stock options are wonderful things, for all of the reasons that you discuss. But a company like Cisco is scarcely a startup.