8-KLeadership ChangesExhibits & Filings

CISCO SYSTEMS, INC. 8-K Report, Executive Changes (Sep 20, 2011)

Filed September 20, 2011For Securities:CSCO

Summary

Cisco Systems, Inc. (CSCO) filed an 8-K on September 20, 2011, reporting on an amended and restated international assignment agreement for Wim Elfrink, Executive Vice President, Emerging Solutions and Chief Globalisation Officer. This agreement formalizes his relocation from Bangalore, India to San Jose, California, effective July 31, 2011, for a term of up to two years. The agreement outlines Mr. Elfrink's compensation, including a base salary of EUR 592,772 (approximately USD 853,651), eligibility for a target bonus of 125% of base salary under the Executive Incentive Plan for fiscal year 2012, and various allowances and reimbursements related to his international assignment. These allowances, including housing, travel, education, and tax services, are capped at approximately $508,000 for FY2012 and $536,000 for FY2013. Additionally, Cisco is committed to providing relocation assistance upon his return to the Netherlands and severance equivalent to 225% of his salary if a comparable position is not offered post-assignment.

Key Highlights

  • 1Cisco Systems entered into an amended international assignment agreement for EVP Wim Elfrink, formalizing his relocation to San Jose, California.
  • 2The assignment is effective from July 31, 2011, and is expected to last up to two years.
  • 3Mr. Elfrink's annual base salary remains EUR 592,772 (approx. USD 853,651).
  • 4He is eligible for a target bonus of 125% of his base salary under the Executive Incentive Plan for FY2012.
  • 5Significant allowances and reimbursements for housing, travel, education, and tax services are provided, capped at approximately $508,000 for FY2012 and $536,000 for FY2013.
  • 6Cisco will provide relocation assistance for Mr. Elfrink's return to the Netherlands.
  • 7A severance package of 225% of his then-current annual salary is stipulated if a comparable role is not offered upon assignment completion.

Frequently Asked Questions

The main purpose of this 8-K filing is to disclose the details of an amended and restated international assignment agreement between Cisco Systems and its Executive Vice President, Wim Elfrink, concerning his relocation from India to the United States and associated compensation and benefits.

Mr. Elfrink's international assignment began on July 31, 2011, with his relocation to San Jose, California, and is anticipated to last for up to two years from that effective date.

Mr. Elfrink will continue to receive an annual base salary of EUR 592,772 (approximately USD 853,651). He is eligible for a target bonus of 125% of his base salary for fiscal year 2012 and will receive various allowances and reimbursements related to his assignment, capped at approximately $508,000 for FY2012 and $536,000 for FY2013.

If Cisco is unable to offer Mr. Elfrink a comparable position after his international assignment is completed, the company is obligated to pay him severance equal to 225% of his then-current annual salary.