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We will love you! Join with John!
Options you say?
As an example, let's say somebody started at Cisco in Oct. 1998 with 2000
options (vesting at 25% per annum). The option price was set at $50. Since
that time the stock has split once, which means he now has 4000 shares, but
still only pays 2000x$50=$100K. At today's price of $62.50 per share that
means his holdings are valued at $250K. On Oct 9, 1999 he can exercise some
of those options and if current value holds he will have $37500 in cash.
Of course, to exercise them early would be foolish. If Cisco's previous
performance is indicative of future performance (ignoring the disclaimer),
then he can expect a 3-for-2 split in November, giving him 6000 shares, and
another 2-for-1 split the following autumn, giving him 12000 shares. If
value holds (of course it will) then he'll have 12000 shares worth, say,
$60.
That's $720,000. Only half are vested though, so that's $360,000, minus
$50K
(his buyout cost) = $310,000. A tidy profit for two years.
So then.. assume one more 3-2 split (18000) and another 2-1 (36000) in the
next two years, and the stock value is at $60 again... by the time he's
fully vested he has $2,160,000 in holdings after 4 years. Oh, and subtract
that original $100K buyout price, that's $2,060,000.
All of this is completely ignorant of the fact that they load you up with
options as you go along. They all take 4 years to fully vest as well.
Bonuses are twice a year, and total %20 of salary unless you're a useless
zit.
The price of all of this is of course hard work, pressure, stress, compet-
ition, confusion, and of course no life.
So, anyone else? http://www.cisco.com/jobs & email me so I can get the
referral bonus. :)
-Ian.
"John M. Klassa" wrote:
>
> Okay FoRKies, I need your help.
>
> I got a job offer from Cisco yesterday. The work looks like it'd be
> interesting, and the people I'd be working with seem like a decent bunch
> (i.e. I don't think I'd have any trouble fitting in and getting along
> great with everybody).
>
> The salary and sign-on bonus aren't stellar... Let's just say it's
> pretty much a lateral move that way (perhaps even a slight decrease,
> given the difference in 401k and benefits).
>
> On the plus side, there are stock options. I don't know if it's kosher
> to talk about such things, but since I don't know better, I will. :-)
> The offer includes 1,500 options (price unknown at this point). It
> sounds like you get more every year, and it also sounds like there are
> quarterly and yearly monetary bonus plans (I haven't seen the written
> offer yet, but this is the impression I'm getting).
>
> In short, while there's no salary boost, the potential for financial
> gain is there in terms of options and bonuses. If you listen to what
> the folks who already work there say, if you stick around for 5 or 6
> years, you'll probably be a millionaire (or close to it).
>
> Anybody got opinions on this? I've got a comfortable job now, one
> I really can't complain about, but there's no real medium-term
> bunch-o'-money incentive to stay. The work is a little on the boring
> side, even. If I go, the work will be more interesting (at least for a
> while :-)), and the financial possibilities are nice to think about. I
> can't decide. Help me decide. :-)
>
> Thanks,
> John
>
> --
> John Klassa / Alcatel USA / Raleigh, NC, USA
--
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