Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: hueyone who wrote (63555)	4/14/2003 4:21:10 PM
From: Lizzie Tudor	Respond to of 77400

There are a number of tech companies that have solid underlying business models who could likely benefit from a rule requiring expensing of stock options, and I agree with Mind, Cisco could be one of them. Let the phonys with false business plans and trumped earnings go bankrupt; let the surviving companies flourish and become stronger. Of course all of us have our own opinions on this, but for example if you consider Oracle to be a survivor because they don't issue stock options to R&D, and the net result is that they had to dump R&D offshore to achieve the necessary quality without appropriate pay to a large R&D organization, I'm not sure that is a win for Oracle as a company and the US software industry as a whole. Its just your average short term thinking that imo should not be encouraged from US companies. About 10 years from now US companies are going to have to compete with indian enterprise software firms, because Oracle essentially "showed them how to do it", all because Larry wanted to hold on to his huge personal options grants without making Oracle appear as excessive in the area. The end result was that Larry did keep his extreme compensation levels while the industry overall took a big hit. Not exemplary management imo. Cisco, otoh is a tremendous corporate citizen, they maintain their US engineering org, they don't overcompensate executives, all the while achieving tremendous profitability. They even buyback the dilution created with options so not much to complain about wrt Cisco. Of course, some still do.