01—Abstract
Summary
Summary of the 8-K filed June 9, 2025. Cited figures are marked; the original filing is the authoritative source.
Cisco Systems, Inc. (CSCO) filed an 8-K on June 8, 2025, detailing a significant executive compensation matter.
The Compensation and Management Development Committee approved an equity award for Mark Patterson, who was recently appointed as Executive Vice President and Chief Financial Officer. This filing provides specific details on the awarded restricted stock units (RSUs), aligning with the company's previously announced leadership change. Investors should note that Mr. Patterson has been granted 47,832 RSUs, which are designed to vest over a three-year period.
The vesting schedule includes a 34%a cliff vesting after the first year, followed by quarterly vesting of 8.25% thereafter. This structure is intended to incentivize long-term commitment and performance from the new CFO.
02—Key points
Key Highlights
- Cisco Systems (CSCO) filed an 8-K on June 8, 2025.
- The filing concerns the compensation arrangement for the newly appointed EVP and CFO, Mark Patterson.
- Mr. Patterson was granted 47,832 Restricted Stock Units (RSUs).
- The RSUs will vest over a 3-year period.
- Vesting includes a 34% cliff after one year.
- Subsequent vesting is quarterly at 8.25% thereafter.
- The equity award is subject to the Cisco Systems, Inc. 2005 Stock Incentive Plan.
03—Questions
Frequently Asked Questions
What is the main purpose of this 8-K filing?
The main purpose of this 8-K filing is to disclose the specific equity compensation award granted to Mark Patterson in connection with his recent appointment as Cisco's Executive Vice President and Chief Financial Officer.
How many RSUs was the new CFO awarded and how will they vest?
Mark Patterson was awarded 47,832 Restricted Stock Units (RSUs). These RSUs are structured to vest over a three-year period, with 34% vesting after the first year (cliff vesting), and the remaining RSUs vesting quarterly at a rate of 8.25% thereafter.
Is this equity award typical for a new executive hire?
Yes, granting equity awards, such as RSUs, is a common practice for senior executive hires in publicly traded companies like Cisco. It serves as a retention incentive and aligns the executive's financial interests with those of the shareholders over the long term.
What is the significance of the cliff vesting and quarterly vesting schedule?
The cliff vesting after one year incentivizes the executive to remain with the company for at least that initial period. The subsequent quarterly vesting encourages continued service and performance throughout the remaining two years of the vesting period.
04—Continue