8-KMaterial Agreements

CISCO SYSTEMS, INC. 8-K Report, Material Agreement (Sep 20, 2006)

Filed September 20, 2006For Securities:CSCO

Summary

This SEC 8-K filing by Cisco Systems, Inc. (CSCO) on September 20, 2006, primarily concerns the awarding of year-end incentive payments to its executive officers for Fiscal Year 2006. The Compensation and Management Development Committee approved these payments under the company's Professional and Leadership Incentive Plan (PLI Plan) and also granted additional discretionary cash incentives. Key executive officers, including Senior Vice Presidents and the CEO John T. Chambers, received substantial incentive payments reflecting the company's achievement of its performance targets. These awards are material as they directly impact executive compensation and demonstrate the company's financial performance as perceived by its board during FY2006.

Key Highlights

  • 1Cisco Systems awarded year-end incentive payments to key named executive officers for Fiscal Year 2006.
  • 2Payments were made under the Professional and Leadership Incentive Plan (PLI Plan), indicating performance targets were met.
  • 3Additional discretionary year-end cash incentives were also awarded to several executive officers.
  • 4CEO John T. Chambers received a significant discretionary year-end incentive payment of $1,300,000.
  • 5The Compensation and Management Development Committee approved these awards, highlighting their importance in executive compensation.
  • 6The filing indicates a positive assessment of the company's performance for FY2006 by the leadership.

Frequently Asked Questions

The main purpose of this 8-K filing is to report the material definitive agreement related to the awarding of year-end incentive payments to Cisco's named executive officers for Fiscal Year 2006.

Yes, the payments under the Professional and Leadership Incentive Plan (PLI Plan) were made upon the Committee's determination that the Company satisfied the targets for payment under that plan, indicating they were linked to performance.

The incentive payments were awarded to named executive officers, including Senior Vice Presidents Charles H. Giancarlo, Richard J. Justice, Randy Pond, Dennis D. Powell, and President and CEO John T. Chambers.

Yes, in addition to the PLI Plan awards, the Committee also awarded additional discretionary year-end cash incentive payments to several named executive officers, independent of the PLI Plan.