8-KOther Events

CISCO SYSTEMS, INC. 8-K Report, Corporate Update (Mar 26, 2013)

Filed March 26, 2013For Securities:CSCO

Summary

This Form 8-K filing from Cisco Systems, Inc. (CSCO) on March 26, 2013, reports on a pre-arranged stock trading plan adopted by Robert W. Lloyd, President of Development and Sales. This plan is designed for the orderly exercise of stock options and the sale of acquired shares, as well as the sale of shares from vested restricted stock units. Investors should note that the plan operates under Rule 10b5-1, allowing executives to diversify their holdings over time without violating insider trading regulations. The transactions, totaling up to 879,117 stock options and 198,313 shares from RSUs, are scheduled to occur between now and September 2014, with full public disclosure through subsequent SEC filings. This plan reflects a standard practice for executive stock management.

Key Highlights

  • 1Robert W. Lloyd, President of Development and Sales, adopted a pre-arranged stock trading plan on March 22, 2013.
  • 2The plan allows for the exercise of up to 879,117 stock options granted in 2005, set to expire between June and September 2014.
  • 3The plan also includes the sale of up to 198,313 shares of Cisco stock acquired upon vesting of restricted stock units.
  • 4All transactions under the plan will be publicly disclosed via Form 144 and Form 4 filings.
  • 5The trading plan was established in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934.
  • 6The plan is designed to enable prudent and gradual diversification of the executive's investment portfolio.
  • 7The trading plan is scheduled to terminate in September 2014.

Frequently Asked Questions

This Form 8-K filing is to publicly disclose that Robert W. Lloyd, President of Development and Sales at Cisco Systems, Inc., has adopted a pre-arranged stock trading plan. This plan allows for the systematic exercise of stock options and sale of shares.

Rule 10b5-1 is a regulation that allows company insiders (like executives) to buy or sell company stock through a pre-arranged plan. This is permitted as long as the plan is adopted when the insider is not in possession of material, non-public information. It provides a safe harbor against insider trading allegations and facilitates portfolio diversification over time.

The plan covers the exercise of up to 879,117 Cisco stock options, which were granted in 2005 and are set to expire between June and September 2014. It also covers the sale of up to 198,313 Cisco shares acquired from the vesting of restricted stock units.

The transactions are scheduled to take place under the plan, which terminates in September 2014. Investors will be informed of each transaction through public filings of Form 144 and Form 4 with the Securities and Exchange Commission.