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

To: rkral who wrote (64264)	7/9/2003 11:18:57 AM
From: Don Lloyd	Respond to of 77400

Ron, OT ... Don, re "The failure to grant an APPROPRIATE number of options as a part of its overall plan." What do you mean by that? Appropriateness of a number is only meaningful (to me) .. when it can be expressed relative to another number. What would that other number be? It is also curious to me that you chose to say "appropriate" .. not "too many" .. and not "too few". You seem to be suggesting there is an optimum number of options for proper "fiduciary responsibility". IOW, granting too many stock options .. or too few .. are both violations of fiduciary responsibility. Is that what you mean? And fiduciary responsibility to whom? Yes. The appropriate number of stock option grants is that number which maximizes shareholder value. In some cases, the appropriate number will be zero, as the cost to existing shareholders will exceed the combination of salary forgone that would otherwise be needed for recruitment and retention, tax credits allowed and option exercise proceeds. None of the numbers are precise or certain, if for no other reason than they depend on the future stock price trajectory. But that's no excuse from making a best effort to choose an appropriate level of option grants. Regards, Don