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

To: GVTucker who wrote (64962)	10/13/2003 2:35:40 PM
From: Lizzie Tudor	Read Replies (2) \| Respond to of 77400

How about this: please post a link showing that there is "considerable debate within KPCB on options expensing". I don't think there is considerable debate, that is the issue here to me. (There were a few articles about Khosla that showed up in the Merc this summer but our discussion was prior to that). I think when the most significant VC of the decade (90s) takes the most aggressive, political position against options expensing in the industry, the implication is that KPCB is against options expensing. Khosla is a good guy but he is no Doerr, and Khosla is not spending half his time in DC lobbying FOR options expensing. Here is the letter to the IASB, signed by KPCB (the firm- NOT one individual), against options expensing We continue our strong support for a disclosure-based standard because many of us do not believe that stock options are an appropriate compensation expense. Rather, the cost of stock options is borne by shareholders in the form of potential dilution. In any case, even if the options should, in theory, be expensed, no reliable method has been found to measure that value in a way that would not be misleading to investors. The footnote disclosure embodied in SFAS 123 represents a balanced approach that offers interested investors ample information for understanding a company’s use of employee stock options without producing misleading financial statements. semi.org Doerr made an impassioned plea against expensing options, and even approached Herz following the meeting. ''I don't think there could be a worse time in American economic history to adopt a policy requiring expensing of stock options,'' said Doerr. If that happens, ''we're going to over the course of a decade, set back American leadership in innovation in a dramatic way.'' siliconvalley.com