8-KOther Events

CISCO SYSTEMS, INC. 8-K Report, Corporate Update (Jun 20, 2008)

Filed June 20, 2008For Securities:CSCO

Summary

This Form 8-K filing by Cisco Systems, Inc. (CSCO) on June 20, 2008, reports on a new pre-arranged stock trading plan adopted by its Chairman and CEO, John T. Chambers. This plan, effective from November 2008 through January 2011, allows Mr. Chambers to exercise stock options and sell up to 6,000,000 shares, along with an additional 1,200,000 shares from his existing holdings. The primary purpose of this plan is for Mr. Chambers to diversify his personal assets and gain liquidity, a standard practice for executives seeking to manage their investment portfolios over time. The plan adheres to Rule 10b5-1 guidelines, ensuring transactions are conducted without the use of material non-public information. Investors should note that the specifics of these transactions will be publicly disclosed through subsequent SEC filings (Form 144 and Form 4).

Key Highlights

  • 1John T. Chambers, Cisco's Chairman and CEO, has adopted a new pre-arranged stock trading plan.
  • 2The plan allows for the exercise of stock options and sale of Cisco shares.
  • 3Up to 6,000,000 shares can be sold from exercised stock options granted in 2001-2002.
  • 4An additional 1,200,000 shares from other holdings may also be sold.
  • 5The plan is effective from November 2008 through January 2011.
  • 6This plan is intended for asset diversification and liquidity purposes for Mr. Chambers.
  • 7Transactions will comply with Rule 10b5-1 and will be publicly disclosed via Form 144 and Form 4 filings.

Frequently Asked Questions

The main purpose of this 8-K filing is to disclose that John T. Chambers, Cisco's Chairman and CEO, has adopted a new pre-arranged stock trading plan. This plan is designed for his personal asset diversification and liquidity needs.

The plan allows Mr. Chambers to exercise stock options, some of which are set to expire between May 2010 and January 2011, and sell up to 6,000,000 shares acquired through these options. He can also sell up to 1,200,000 additional shares from his existing shareholdings.

The transactions under the plan can begin in November 2008 and continue until January 2011. All trades made under this plan will be publicly disclosed by Cisco through filings on Form 144 and Form 4 with the Securities and Exchange Commission.

No, this plan does not necessarily indicate any negative outlook on Cisco's future stock performance. It is established under Rule 10b5-1, which allows executives to pre-arrange stock sales during periods when they are not in possession of material non-public information. This is a common practice for diversification and personal financial planning.