8-KOther Events

CISCO SYSTEMS, INC. 8-K Report, Corporate Update (Sep 29, 2011)

Filed September 29, 2011For Securities:CSCO

Summary

Cisco Systems, Inc. (CSCO) filed an 8-K on September 29, 2011, reporting the adoption of a pre-arranged stock trading plan by Gary B. Moore, Executive Vice President and Chief Operating Officer. This plan allows Mr. Moore to exercise stock options and sell acquired shares, as well as sell shares from vested restricted stock units. These transactions are designed to occur over an extended period and are compliant with Rule 10b5-1, which protects individuals trading under such plans from accusations of insider trading. The plan involves the exercise of up to 200,000 stock options granted in 2003, which are set to expire in September 2012, and the sale of the resultant shares. Additionally, up to 100,000 shares acquired through prior vesting of restricted stock units will be sold. The trading plan is scheduled to conclude in December 2012, and all transactions will be publicly disclosed via Form 144 and Form 4 filings.

Key Highlights

  • 1Cisco COO, Gary B. Moore, has adopted a pre-arranged stock trading plan.
  • 2The plan allows for the exercise of up to 200,000 stock options granted in 2003.
  • 3These options are set to expire in September 2012.
  • 4The plan also includes the sale of up to 100,000 shares from vested restricted stock units.
  • 5Transactions under the plan are structured to comply with Rule 10b5-1, ensuring trading while not in possession of material non-public information.
  • 6The trading plan is set to terminate in December 2012.
  • 7All transactions will be publicly disclosed through Form 144 and Form 4 filings.

Frequently Asked Questions

The primary purpose of this 8-K filing is to publicly disclose that Gary B. Moore, Cisco's Chief Operating Officer, has adopted a pre-arranged stock trading plan in accordance with Rule 10b5-1.

The plan allows Mr. Moore to exercise up to 200,000 stock options granted in 2003 (expiring in 2012) and sell the resulting shares, as well as sell up to 100,000 shares from vested restricted stock units.

Pre-arranged trading plans, like the one adopted by Mr. Moore under Rule 10b5-1, allow company insiders to diversify their holdings over time without violating insider trading regulations. For investors, it indicates a structured approach to share sales by a key executive, rather than potentially reactive selling.

The transactions under the plan are scheduled to occur between the adoption date and December 2012. Investors will be informed of specific trades through public filings on Form 144 and Form 4 with the SEC.