8-KLeadership Changes

CISCO SYSTEMS, INC. 8-K Report, Executive Changes (Jan 23, 2008)

Filed January 23, 2008For Securities:CSCO

Summary

Cisco Systems, Inc. (CSCO) filed an 8-K report on January 22, 2008, announcing a significant leadership transition within its finance department. Effective February 15, 2008, Frank A. Calderoni has been appointed Executive Vice President and Chief Financial Officer (CFO), succeeding Dennis Powell, who is retiring from that role but will remain with the company as an Executive Advisor. This appointment marks a promotion for Mr. Calderoni, who has been with Cisco since 2004 and previously held key finance positions, including CFO at QLogic Corporation and SanDisk Corporation. The company has also detailed the compensation arrangements for both executives. Mr. Calderoni's appointment comes with an increased annual base salary, a higher target award percentage under the Executive Incentive Plan, and a grant of restricted stock units. Mr. Powell's transition to an Executive Advisor role includes a reduced base salary, continued vesting of equity awards, and eligibility for employee benefits, though he will not participate in bonus or incentive plans beyond his fiscal 2008 EIP eligibility.

Key Highlights

  • 1Frank A. Calderoni appointed as new Executive Vice President and Chief Financial Officer (CFO), effective February 15, 2008.
  • 2Dennis Powell retires as CFO, effective February 15, 2008, but will serve as an Executive Advisor.
  • 3Mr. Calderoni, previously Senior Vice President, Customer Solutions Finance, brings experience from QLogic Corporation and SanDisk Corporation.
  • 4Calderoni's compensation package includes an increased base salary to $525,000, a target EIP award of 125% of base salary, and a grant of 75,000 restricted stock units.
  • 5Powell will receive an annual base salary of $200,000 as Executive Advisor and will continue to vest in equity awards and participate in employee benefits.
  • 6Powell will not be eligible for bonus arrangements or cash incentive plans, except for his fiscal 2008 EIP eligibility.
  • 7The Compensation and Management Development Committee approved these changes on January 16, 2008.

Frequently Asked Questions

Frank A. Calderoni has been appointed as the new Executive Vice President and Chief Financial Officer (CFO) of Cisco Systems, effective February 15, 2008.

Dennis Powell is retiring as CFO, effective February 15, 2008. However, he will continue with Cisco as an Executive Advisor on a reduced schedule.

Mr. Calderoni's annual base salary will increase to $525,000, his target award under the Executive Incentive Plan (EIP) will be 125% of his base salary, and he will be granted 75,000 restricted stock units.

As an Executive Advisor, Mr. Powell will receive an annual base salary of $200,000, continue to vest in his existing Cisco equity awards, and remain eligible for employee benefits. He will not participate in bonus or cash incentive plans, except for his fiscal 2008 EIP eligibility.