8-KRegulation FD

CISCO SYSTEMS, INC. 8-K Report, Regulation FD Disclosure (Sep 11, 2008)

Filed September 11, 2008For Securities:CSCO

Summary

Cisco Systems, Inc. (CSCO) filed a Form 8-K on September 11, 2008, to disclose an update regarding its equity grant program. The Compensation and Management Development Committee approved fiscal year 2009 merit-based equity grants totaling approximately 28 million restricted stock units (RSUs) to eligible employees. In addition to the immediate grants, the committee also approved the framework for future performance-based RSUs for certain employees, targeting an aggregate of approximately 3 million RSUs based on Cisco's fiscal year 2009 financial performance. This filing is intended to provide transparency on the company's employee compensation strategy, particularly concerning equity incentives aimed at retaining talent and aligning employee interests with company performance.

Key Highlights

  • 1Cisco approved fiscal year 2009 merit-based equity grants totaling approximately 28 million restricted stock units (RSUs).
  • 2The grants were approved by the Compensation and Management Development Committee on September 11, 2008.
  • 3These grants are company-wide and merit-based, intended for eligible employees.
  • 4The company also approved the potential for future performance-based RSUs for certain employees.
  • 5The target amount for these future performance-based RSUs is approximately 3 million RSUs.
  • 6The performance-based RSUs will be contingent on Cisco's financial performance in fiscal year 2009.

Frequently Asked Questions

The primary purpose of this 8-K filing is to disclose Cisco's approval of fiscal year 2009 merit-based equity grants and the framework for future performance-based equity grants to its employees.

Approximately 28 million restricted stock units (RSUs) were approved for fiscal year 2009 merit-based grants to eligible employees.

The performance-based RSUs are rights to receive future grants based on Cisco's financial performance in fiscal year 2009. The target amount for these RSUs is approximately 3 million.

This filing primarily concerns compensation and equity awards. While these awards have financial implications (e.g., stock dilution, compensation expense), the 8-K itself does not report financial results but rather the approval of these equity grants.