8-KOther Events

CISCO SYSTEMS, INC. 8-K Report, Corporate Update (Jun 22, 2011)

Filed June 22, 2011For Securities:CSCO

Summary

Cisco Systems, Inc. (CSCO) filed an 8-K on June 22, 2011, reporting an event on June 16, 2011. The key disclosure concerns Robert W. Lloyd, Executive Vice President of Worldwide Operations, who adopted a pre-arranged stock trading plan. This plan allows for the sale of up to 199,937 shares of Cisco stock acquired through the vesting of restricted stock units. The plan, adopted in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934 and company policy, is designed for diversification over an extended period and is scheduled to terminate in June 2012. Transactions under this plan will be publicly disclosed via Form 144 and Form 4 filings. Investors should note that such plans are established when the individual is not in possession of material, non-public information, providing a structured method for portfolio management.

Key Highlights

  • 1Executive Vice President Robert W. Lloyd has adopted a pre-arranged stock trading plan.
  • 2The plan allows for the potential sale of up to 199,937 Cisco shares.
  • 3The shares to be sold were acquired upon the vesting of restricted stock units.
  • 4The trading plan was adopted on June 16, 2011, and is set to expire in June 2012.
  • 5The plan is structured under Rule 10b5-1, ensuring it was established when Mr. Lloyd possessed no material non-public information.
  • 6Transactions under this plan will be reported on Forms 144 and 4.
  • 7This disclosure is primarily an administrative event related to executive stock holdings and trading strategy.

Frequently Asked Questions

The primary purpose of this 8-K filing is to disclose that Cisco's Executive Vice President of Worldwide Operations, Robert W. Lloyd, has established a pre-arranged stock trading plan to sell a portion of his Cisco stock holdings acquired through restricted stock units.

Mr. Lloyd's plan allows for the sale of up to 199,937 shares of Cisco stock.

The plan is 'pre-arranged' because it was established on June 16, 2011, at a time when Mr. Lloyd was not in possession of material, non-public information. Rule 10b5-1 allows individuals to set up pre-determined trading schedules for company stock, providing a structured and transparent way to manage their investment portfolios over time, and insulating them from accusations of insider trading.

The plan is effective until June 2012. The specific timing of the sales will depend on the terms of the plan. Investors will be informed of any transactions executed under this plan through public filings on Form 144 and Form 4 with the Securities and Exchange Commission.