Feeds

Cisco chief's package shrinks 65 per cent

Forced to make do with $6.6 million pay packet

Build a business case: developing custom apps

Cisco chief John Chambers' total direct remuneration package slumped 65 per cent in fiscal 2011 to a mere $6.625m (£4.14m), according to an SEC filing.

Clearly the time has come for the Chambers' household to switch to the value range in supermarkets, holiday at home and downgrade the family fleet of cars.

The long-serving exec saw his salary slip by 2 per cent to $375,000 and received only half of the $12.5m long-term equity awards after Cisco's compensation committee said it would not shower top bosses with cash incentives or performance-based options.

This is despite Cisco easing past its "target operational performance goals for its cash incentive and its performance-based equity incentive awards" as "shareholder value eroded in fiscal 2011", the SEC filing stated.

"Consequently, the Compensation Committee exercised its negative discretion and determined that no named executive officer would receive a cash incentive award or a performance-based equity award for fiscal 2011," it added.

Chambers was not alone, as other named exec officers saw their total direct compensation drop by approximately 60 per cent compared to fiscal 2010.

The networking goliath's share price fell to a 52-week low in July amid the news that Cisco was preparing to axe thousands of staff in a company-wide restructure that saw some senior channel execs leave the business.

The closure of the Flip camera unit and subdued profits also weighed heavy on share value in the year.

Cisco closed fiscal 2011, which ended early August, with revenues of $43.2bn up 7.9 per cent, but net profits fell 16.4 per cent to $6.5bn and earnings per share dipped 12 per cent to $1.17. ®

Boost IT visibility and business value

More from The Register

next story
Kate Bush: Don't make me HAVE CONTACT with your iPHONE
Can't face sea of wobbling fondle implements. What happened to lighters, eh?
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Online tat bazaar eBay coughs to YET ANOTHER outage
Web-based flea market struck dumb by size and scale of fail
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.