8-KMaterial Agreements

CISCO SYSTEMS, INC. 8-K Report, Material Agreement (Mar 29, 2006)

Filed March 29, 2006For Securities:CSCO

Summary

This 8-K filing from Cisco Systems, Inc. (CSCO) primarily reports on an executive compensation adjustment approved by the Compensation and Management Development Committee of the Board of Directors. Effective March 1, 2006, several named executive officers received increases in their annual base salaries. Specifically, Charles H. Giancarlo (Senior Vice President, Chief Development Officer) and Richard J. Justice (Senior Vice President, Worldwide Field Operations) will have their base salaries increased to $450,000 annually. James Richardson (Senior Vice President, Commercial Business) will see his annual base salary increased to $410,000. The filing notes that the salary of President and CEO John T. Chambers was not reviewed at this time. This information is significant for investors interested in executive compensation practices and potential incentives for key leadership.

Key Highlights

  • 1Cisco Systems, Inc. (CSCO) filed an 8-K on March 28, 2006, reporting on an event that occurred on March 23, 2006.
  • 2The Compensation and Management Development Committee of the Board of Directors approved increases to the annual base salaries of certain named executive officers.
  • 3Effective March 1, 2006, Charles H. Giancarlo's base salary was increased to $450,000.
  • 4Effective March 1, 2006, Richard J. Justice's base salary was increased to $450,000.
  • 5Effective March 1, 2006, James Richardson's base salary was increased to $410,000.
  • 6The base salary of President and CEO John T. Chambers was not reviewed by the Committee at this time.
  • 7This filing pertains to Item 1.01, Entry Into a Material Definitive Agreement, concerning executive compensation.

Frequently Asked Questions

The main purpose of this 8-K filing is to report on the decision by Cisco's Compensation and Management Development Committee to increase the annual base salaries of several named executive officers, effective March 1, 2006.

Charles H. Giancarlo (Senior Vice President, Chief Development Officer) and Richard J. Justice (Senior Vice President, Worldwide Field Operations) both received increases to $450,000 annually. James Richardson (Senior Vice President, Commercial Business) received an increase to $410,000 annually.

No, the filing explicitly states that the salary of President and CEO John T. Chambers was not reviewed by the Committee at this time and therefore was not adjusted in this report.

For investors, these salary increases indicate a recognition of the value and contributions of key executives within the company and can be seen as part of the company's strategy to retain and motivate top talent. It also provides transparency into executive compensation practices.