Financial Accounting Blog

Sunday, June 13, 2004

Cisco Employees Flood FASB with Letters. After issuing a proposed rule that would require companies to expense stock options on their income statements, FASB received a plethora of complaint letters, most of which came from Cisco Systems.
About 1,800 Cisco employees, or 7.5 percent of the company's domestic workforce, have submitted comments on the proposed rule; in a sampling of 25 letters, all of them opposed it. According to a Cisco source, the comment letters may have been inspired by a memo signed by chief financial officer Dennis Powell. That message alerted employees to FASB's 90-day public comment period and invited employees to visit Cisco's internal government-affairs Web site to learn how their opinions could be heard.