8-KOther Events

CISCO SYSTEMS, INC. 8-K Report, Corporate Update (Sep 22, 2010)

Filed September 22, 2010For Securities:CSCO

Summary

Cisco Systems, Inc. (CSCO) filed an 8-K on September 21, 2010, to report on pre-arranged stock trading plans adopted by two of its board members, Larry R. Carter and Jerry Yang. These plans, established on September 16, 2010, involve the exercise of stock options originally granted in 2001 that were set to expire in November 2010. Mr. Carter's plan allows for the sale of up to 100,000 shares, while Mr. Yang's plan permits the sale of up to 15,000 shares. These transactions were executed in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934, which enables individuals to establish stock trading plans when they do not possess material non-public information, allowing for systematic diversification of their holdings over time. Investors should note that these sales are part of a pre-planned diversification strategy by directors and are expected to be disclosed through subsequent Form 144 and Form 4 filings.

Key Highlights

  • 1Two Cisco board members, Larry R. Carter and Jerry Yang, have adopted pre-arranged stock trading plans.
  • 2The plans, adopted on September 16, 2010, are for exercising stock options granted in 2001 that expire in November 2010.
  • 3Larry R. Carter may sell up to 100,000 shares of Cisco stock under his plan.
  • 4Jerry Yang may sell up to 15,000 shares of Cisco stock under his plan.
  • 5These plans were established in compliance with Rule 10b5-1, ensuring they were adopted without access to material non-public information.
  • 6The purpose of these plans is to facilitate orderly diversification of the directors' investment portfolios.
  • 7Details of these transactions will be publicly disclosed via Form 144 and Form 4 filings.

Frequently Asked Questions

This 8-K filing serves to inform the public that two members of Cisco's Board of Directors, Larry R. Carter and Jerry Yang, have established pre-arranged stock trading plans. These plans are for exercising stock options that are nearing their expiration date and selling the resulting shares.

The directors are selling shares as part of pre-arranged trading plans (under Rule 10b5-1) to exercise stock options that were granted in 2001 and were set to expire in November 2010. This is a structured way for them to diversify their personal investments over time without violating insider trading regulations.

No, this filing itself does not indicate a negative outlook for Cisco. The transactions are executed under Rule 10b5-1, which requires the plan to be established when the individual does not possess material non-public information. These are pre-planned sales for personal financial planning and portfolio diversification, not necessarily a reflection of the company's future performance.

Larry R. Carter's plan allows for the sale of up to 100,000 shares, and Jerry Yang's plan allows for the sale of up to 15,000 shares. The actual number of shares sold may be less than these maximums, and the sales will occur over a period as dictated by the plans.