Summary
This 8-K filing from Cisco Systems, Inc. (CSCO) primarily announces the adoption of a pre-arranged stock trading plan by Executive Vice President and Chief Legal Officer, Mark Chandler. The plan allows Mr. Chandler to sell shares of Cisco stock over a period extending to December 2019, and was established in compliance with Rule 10b5-1 of the Securities Exchange Act of 1934. This type of plan is designed to enable individuals to diversify their investments without being in possession of material non-public information at the time of adoption.
Key Highlights
- 1Executive Vice President and Chief Legal Officer, Mark Chandler, adopted a pre-arranged stock trading plan.
- 2The stock trading plan allows for the sale of Cisco stock.
- 3The plan is scheduled to terminate in December 2019.
- 4Transactions under the plan will be publicly disclosed via Form 144 and Form 4 filings.
- 5The plan was adopted in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934.
- 6Rule 10b5-1 allows for the pre-scheduled sale of stock by individuals not in possession of material, non-public information.
Frequently Asked Questions
The main purpose of this filing is to inform investors that a key executive, Mark Chandler, has put in place a pre-arranged plan to sell shares of Cisco stock. This is a routine disclosure for such transactions.
No, the filing states the plan was adopted under Rule 10b5-1, which permits individuals to sell shares according to a pre-determined plan, even if they later come into possession of material non-public information. This is often a method for executives to diversify their personal portfolios over time.
Details of the transactions under the plan will be disclosed publicly through subsequent filings of Form 144 and Form 4 with the Securities and Exchange Commission.
The pre-arranged stock trading plan is scheduled to terminate in December 2019.