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

To: Lizzie Tudor who wrote (64044)	5/15/2003 9:46:25 AM
From: RetiredNow	Respond to of 77400

Frankly, I think Chambers is one of the best CEOs in the world. However, even great CEOs make mistakes. Putting my old accountant hat on, I would have advised that he expense the darned options back when Cisco was taking their big bath write offs. That was the time to get all the bad news out. In fact, they did get ALL the bad news out except for options. Now, as the economy recovers, they're going to have to expense them and the stock will take a hit. It's unfortunate. I think they thought they could win this battle, but no one could have guessed how vitriolic the investing public could get at anything that looks like accounting shenanigans. But Cisco will recover, for all the reasons you listed. It's a great company. Once they deal with the options issue, then they will start seeing the true cost of their employees, which may force them to make some hard decisions about their pay packages if they want to stay competitive. It will probably mean more cash incentives and fewer options, but that's better for the company in the long run anyway.