8-KLeadership ChangesExhibits & Filings

CISCO SYSTEMS, INC. 8-K Report, Executive Changes (Jan 8, 2013)

Filed January 8, 2013For Securities:CSCO

Summary

Cisco Systems, Inc. (CSCO) filed an 8-K report on January 7, 2013, detailing a "Localization Agreement" with Executive Vice President Wim Elfrink. This agreement governs his transition from an international assignment to a U.S.-based role and supersedes prior employment arrangements. The primary financial implications for investors revolve around the compensation and benefits structured for Mr. Elfrink under this new agreement, reflecting his relocation and continued employment with Cisco. Key aspects include Mr. Elfrink's entitlement to significant cash payments totaling $1,000,000 over two years, subject to continued employment. His base salary has been adjusted to $775,000 annually, effective January 1, 2013. While he will now participate in the U.S. employee benefits program, he will not be eligible for the U.S. 401(k) or nonqualified deferred compensation plans. His participation in the Netherlands Capital Plan will continue under specific terms. Investors should note this change as it represents a modification in executive compensation and aligns with the company's strategy for key personnel.

Key Highlights

  • 1Cisco entered into a "Localization Agreement" with Executive Vice President Wim Elfrink, effective January 7, 2013.
  • 2This agreement pertains to Mr. Elfrink's localization to the United States and supersedes his previous International Assignment Agreement.
  • 3Mr. Elfrink will receive cash payments of $700,000 in January 2013 and $300,000 in January 2014, contingent upon continued employment.
  • 4His base salary is set at $775,000 per year, effective January 1, 2013.
  • 5Mr. Elfrink will participate in U.S. employee benefits but will be excluded from the U.S. 401(k) and nonqualified deferred compensation plans.
  • 6Continued participation in the Netherlands Capital Plan is permitted, with specific limitations on pensionable salary.
  • 7The agreement signifies a change in executive employment terms and compensation structure due to relocation.

Frequently Asked Questions

The main purpose of this 8-K filing is to disclose the "Localization Agreement" entered into between Cisco Systems, Inc. and its Executive Vice President, Wim Elfrink, which outlines the terms of his employment as he transitions to a U.S.-based role.

Mr. Elfrink will receive a total of $1,000,000 in cash payments ($700,000 in January 2013 and $300,000 in January 2014), subject to his continued employment. His base salary is set at $775,000 annually starting January 1, 2013. He will also be eligible for U.S. employee benefits, with specific exceptions.

Yes, while Mr. Elfrink will participate in the general U.S. employee benefits program, he will not be eligible to participate in the U.S. 401(k) plan or the nonqualified deferred compensation plan. His participation in the Netherlands Capital Plan will continue under its existing terms, with certain caps on pensionable salary.

This agreement specifically addresses the compensation and benefits adjustments for a key executive relocating to the U.S. It reflects a localized compensation structure for Mr. Elfrink that aligns with his new role and location, rather than indicating a broad shift in overall company strategy, though it does highlight Cisco's approach to managing international executive transitions.