8-KMaterial Agreements

CISCO SYSTEMS, INC. 8-K Report, Material Agreement (Sep 8, 2005)

Filed September 8, 2005For Securities:CSCO

Summary

This Form 8-K filing by Cisco Systems, Inc. (CSCO) on September 8, 2005, reports on the Compensation and Management Development Committee's decisions regarding year-end incentive payments for Fiscal Year 2005. The key event is the award of these incentives under the Professional and Leadership Incentive Plan (PLI Plan) to several named executive officers, contingent on the company meeting its performance targets. This filing provides transparency on executive compensation decisions made by the board.

Key Highlights

  • 1Cisco Systems, Inc. (CSCO) filed an 8-K on September 8, 2005.
  • 2The filing details year-end incentive payments for Fiscal Year 2005.
  • 3Payments were made under the Professional and Leadership Incentive Plan (PLI Plan).
  • 4Awards were contingent on the company meeting specific payment targets.
  • 5Named executive officers receiving payments include Charles H. Giancarlo, Richard J. Justice, Mario Mazzola, James Richardson, and John T. Chambers.
  • 6John T. Chambers, CEO, received a discretionary incentive payment independent of the PLI Plan.
  • 7The Compensation and Management Development Committee approved these awards.

Frequently Asked Questions

The main purpose of this 8-K filing is to disclose material information regarding the awards of year-end incentive payments to Cisco's named executive officers for Fiscal Year 2005, as decided by the Compensation and Management Development Committee.

Incentive payments were awarded to Charles H. Giancarlo (Senior Vice President, Chief Development Officer), Richard J. Justice (Senior Vice President, Worldwide Field Operations), Mario Mazzola (former Senior Vice President, Chief Development Officer), James Richardson (Senior Vice President, Chief Marketing Officer), and John T. Chambers (President and Chief Executive Officer).

The incentive payments under the PLI Plan were awarded upon the Committee's determination that Cisco Systems, Inc. had satisfied the targets for payment under the plan. John T. Chambers' incentive payment was at the Committee's discretion.

The PLI Plan stands for the Fiscal Year 2005 Professional and Leadership Incentive Plan, which is a company-sponsored plan under which year-end incentive payments were awarded to eligible employees, including named executive officers, based on meeting certain performance targets.