Summary
This 8-K/A filing from Cisco Systems, Inc. serves as an amendment to a previous 8-K, providing crucial details regarding the executive compensation for Charles H. Robbins upon his appointment as Chief Executive Officer and John T. Chambers in his transition to Executive Chairman. The amendment clarifies compensation adjustments approved by the Compensation Committee, offering investors a clearer picture of the financial arrangements tied to this significant leadership change. The disclosure is vital for understanding the financial implications of the CEO transition and the associated incentives for key executives.
Key Highlights
- 1Amendment to a previous 8-K filing regarding CEO transition and compensation.
- 2Charles H. Robbins appointed CEO, John T. Chambers transitions to Executive Chairman, effective July 26, 2015.
- 3Mr. Robbins' annual base salary increased to $1,150,000 effective July 26, 2015.
- 4Mr. Robbins' target award percentage under the Executive Incentive Plan (EIP) for fiscal year 2016 set at 225% of base salary.
- 5Mr. Chambers' annual base salary reduced to $1,000,000 effective July 26, 2015.
- 6Mr. Chambers will not be eligible for a cash incentive award under the EIP for fiscal year 2016.
- 7Approved target values for future long-term equity grants: $13 million for Mr. Robbins and $7 million for Mr. Chambers, with a 75/25 split between performance-based and time-based restricted stock units.
Frequently Asked Questions
This filing is an amendment to a previous 8-K report. Its main purpose is to disclose the specific compensation details for Charles H. Robbins, the newly appointed CEO, and John T. Chambers, who transitioned to Executive Chairman, which were not fully determined at the time of the initial filing.
Effective July 26, 2015, Charles Robbins' annual base salary was increased to $1,150,000. Additionally, his target award percentage under the Cisco Systems, Inc. Executive Incentive Plan (EIP) for fiscal year 2016 was set at 225% of his base salary. He is also set to receive future long-term equity grants with a target value of $13 million.
John T. Chambers' annual base salary was reduced to $1,000,000, effective July 26, 2015. He will not be eligible for a cash incentive award under the EIP for fiscal year 2016. He is also slated to receive future long-term equity grants with a target value of $7 million.
The approved target values for future long-term, equity-based grants are $13 million for Mr. Robbins and $7 million for Mr. Chambers. These grants are expected to be allocated 75% to performance-based restricted stock units and the remaining 25% to time-based restricted stock units.