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

To: Kirk © who wrote (65447)	5/13/2004 10:45:19 AM
From: rkral	Read Replies (2) \| Respond to of 77400

OT .. Kirk, re >>>I still think if everyone showed up at conference calls and asked the CEO and CFO this simple question "If you did not have to buy back shares to prevent dilution by options, what dividend per share could you have paid shareholders with that cash?"<<< The CEO and CFO might retort ... "If we didn't compensate our employees with options, we would have to compensate them with additional cash in order to remain competitive in the labor market. Then how much cash do you think we'd have with which to pay the dividends you desire?" Ron

To: Kirk © who wrote (65447)	5/13/2004 1:33:35 PM
From: RetiredNow	Respond to of 77400

Hi Kirk, I think I'd slightly modify what you are saying when I state my opinion. I'm all for the transfer of wealth from shareholders to insiders, if there is a return that more than offsets that wealth transfer. In other words, we need transparent views into how much the stock options are costing shareholders, how much the insiders are getting out of their options, and the net gain to the company from this wealth transfer. Only then can shareholders make a good decision on whether it was worth it or not. Right now, it's not exactly clear how much options are costing shareholders, we don't know how much of that wealth actually ends up in insider's pockets, and we really know nothing about how much return shareholders get on that money. Ouch.