Cisco's Chambers gets $US2 million payout despite bad year
- 07 September, 2009 07:50
- Comments
Cisco Systems gave Chairman and CEO John Chambers a "discretionary incentive payment" of more than $US2 million for the company's 2009 fiscal year, despite the fact that net income fell nearly 24 percent from the previous year on sales that were down almost 9 percent.
Chambers and four other top executives were not eligible for bonuses under Cisco's Executive Incentive Plan because the dominant networking vendor didn't meet the financial performance goals required for making those awards, according to a filing to the U.S. Securities and Exchange Commission on Friday.
However, Cisco's Compensation and Management Development Committee "considered the company's solid financial performance during a period of tough economic challenges, and each individual's key role in driving operational excellence and strong profitability" in making the discretionary payments, the filing said.
The awards were much lower than the cash incentive payments given to each individual last fiscal year, the company noted.
For the 2009 fiscal year ended July 25, Cisco earned $US6.1 billion, or $US1.05 per share, on net sales of $US36.1 billion.
Chambers was awarded $US2.031 million.
The other executives who benefited were Executive Vice President and Chief Financial Officer Frank Calderoni ($US900,000); Wim Elfrink, executive vice president, Cisco Services and chief globalization officer ($US1 million); Randy Pond, executive vice president, operations, processes and systems ($US900,000); and Richard Justice, former executive vice president, worldwide operations and business development, who is now an executive vice president and executive advisor ($US750,000).
On Friday, Cisco shares closed at $21.84, up from $16.30 at the end of December.
Come socialise with us! Facebook | LinkedIn
- Bookmark this page
- Share this article
- Got more on this story? Email ARN
- Follow ARN on twitter
- Premier Media Group Fast Study
- Aberdeen Group: Building Business Resilience Through Active Archive
- Spectra Logic and Australian National University Success Story - March 2012
- In Search of the Long-Term Archiving Solution —Tape Delivers Significant TCO Advantage over Disk
- In Search of the Long-Term Archiving Solution —Tape Continues to Be a Major Player
-
Facebook scammers host Trojan horse extensions on the Chrome Web Store
-
Webroot: Growth in security
-
Sice quits Acronis, joins Staples
-
Sice quits Acronis, joins Staples
-
Conroy to receive secret filter forum report














Comments
Post new comment