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

To: Paul V. who wrote (66801)	1/3/2005 4:03:06 PM
From: RetiredNow	Read Replies (1) \| Respond to of 77397

Same. Restricted stock has to be expensed, unlike stock options. However, when MSFT abandoned options in favor of restricted stock the allocations to employees were much smaller. I think 1/4 of what they used to get. So if you used to get 5,000 options per year, you'd only get about 1,250 restricted stock. So my guess is that when Cisco has to expense options after 6/15, then they might move to restricted stock, but give fewer out, which should benefit shareholders in that yearly dilution related to employee compensation will be much smaller.