8-KLeadership ChangesExhibits & Filings

CISCO SYSTEMS, INC. 8-K Report, Executive Changes (Sep 12, 2018)

Filed September 12, 2018For Securities:CSCO

Summary

This 8-K filing by Cisco Systems, Inc. reports on the separation of Rebecca Jacoby, former Senior Vice President and Chief of Operations. Effective September 21, 2018, Ms. Jacoby will transition from an executive advisor role. The separation agreement includes significant financial and equity benefits for Ms. Jacoby, notably the accelerated vesting of time-based restricted stock units scheduled to vest between November 2018 and February 2020, and a cash payment of approximately $2.1 million. This payment reflects eighteen months of base salary, 150% of her target bonus, and 17 months of COBRA premiums. In exchange, Ms. Jacoby has agreed to post-termination restrictions, including a one-year non-compete clause with Cisco's competitors and a non-solicitation clause for Cisco employees, alongside other standard confidentiality and non-disparagement obligations.

Key Highlights

  • 1Cisco Systems, Inc. (CSCO) filed an 8-K on September 12, 2018, detailing executive changes.
  • 2Rebecca Jacoby, former Senior Vice President and Chief of Operations, is departing the company.
  • 3Ms. Jacoby will receive accelerated vesting of restricted stock units previously set to vest between November 2018 and February 2020.
  • 4A cash payment of approximately $2.12 million is part of the separation agreement.
  • 5The cash payment includes 18 months of base salary, 150% of her target bonus, and 17 months of COBRA premiums.
  • 6Ms. Jacoby has agreed to post-termination restrictions, including a one-year non-compete and non-solicitation agreement.
  • 7The Separation Agreement has been filed as Exhibit 10.1 to the 8-K.

Frequently Asked Questions

This 8-K filing is primarily to report the separation of Rebecca Jacoby, a key executive (former SVP and Chief of Operations), from Cisco Systems, Inc., and to disclose the terms of her separation agreement.

Ms. Jacoby is entitled to accelerated vesting of her time-based restricted stock unit awards that were scheduled to vest between November 10, 2018, and February 10, 2020. She will also receive a cash payment totaling approximately $2,116,968.18, which comprises 18 months of her annual base salary, 150% of her target bonus award, and 17 months of COBRA premiums.

In exchange for the benefits provided, Ms. Jacoby has signed a release of claims against Cisco. She has also agreed to comply with post-termination restrictions for a period of one year, which include not engaging with competitor companies, not soliciting Cisco employees, and not making disparaging statements about Cisco, in addition to adhering to her existing Proprietary Information and Inventions Agreement.

Based solely on this 8-K filing, this event pertains to the departure of a specific executive and the associated contractual terms. It does not, by itself, signal financial distress or a major strategic shift for Cisco Systems, Inc. Such filings are common for executive transitions and often include standard severance packages and non-compete clauses.