SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?


To: Stock Farmer who wrote (67279)3/10/2005 1:13:18 AM
From: Elroy  Respond to of 77400
 
While your suggestion will make the cost perfectly obvious and unavoidable, therefore addressing root cause, it also obliterates a very effective tool at the same time.

I agree it reduces the ability of a cash starved company to use equity financing. But this doesn't seem to be a concern to say, CSCO, EMC, SUNW or most of the large tech companies that are rolling in cash.

I think it would be interesting if cash rich companies HAD to actually spend the money buy their "compensation options" over the counter and then give it to the employees once a year. Perhaps we would see companies deciding that their employees actually prefer $10 of cash to $10 of at the money calls that vest over 4 years?