On 1 Oct 2014
Cisco slashes CEO pay after missed goals!!!,
Since the Yahoo article left much to be desired (as per their usual):
Cisco CEO John Chambers Gets 22% Lower Compensation Of $16.5 Mln In 2014
(RTTNews.com) - Networking gear maker Cisco Systems, Inc. ( CSCO ) revealed that its Chairman and Chief Executive Officer John Chambers received a 2014 total compensation that was 21.6 percent lower than last year. The cut comes as he received lower performance-based compensation as the company failed to meet its profit and sales target in fiscal 2014.
The San Jose, California-based company revealed this in a definitive proxy statement filed with the U.S. Securities and Exchange Commission on Tuesday.
"Based on Cisco's performance at 95% of target during fiscal 2014, the incentive cash awards paid for fiscal 2014 to the named executive officers were on average 40% less than fiscal 2013 and at approximately the 70th percentile of the Peer Group," the company stated in the filing.
Chambers, who has led Cisco for the past 19 years, received a total compensation of $16.5 million, including base salary, stock grants and incentives in 2012, compared to the significant $21.1 million he received last year, and the $11.7 million he got in 2012.
The total compensation received by Chambers in 2014 includes $1.10 million as base salary, $12.9 million as stock grants, variable cash incentive of $2.50 million, and all other compensations totaling $0.011 million.
Chambers' base salary remained unchanged from 2013, while stock awards dropped 15 percent and variable cash incentive plunged 47 percent from last year.
Further, the filing shows a 16 percent drop in total 2014 compensation for Chief Financial Officer Frank Calderoni to $9.3 million from last year's $11.1 million. President and Chief Operating Officer Gary Moore's total 2014 compensation also declined 35 percent to $11.2 million from last year's $17.2 million. Robert Lloyd, president of development and sales, also saw his compensation drop 33 percent to $10.9 million.
The compensation committee determines appropriate compensation for the CEO as well as other executive officers and makes a recommendation to the Board for their ratification.
Chambers' base salary was set very low compared to other principal officers of the company until 2012 based on his long-standing request that a greater percentage of his total cash compensation be tied to Cisco performance. But, he then started to receive a three-fold increase in base salary from 2013 onwards.
The Compensation Committee decided to discontinue setting Chambers' base salary at a relatively nominal amount and increased his historically low base salary closer to the median base salary of the other CEOs in the Updated Peer Group in 2013.
The base salary for Chambers was fixed by the Compensation Committee at $1.10 million for 2013, compared to the meager $0.375 million in 2012.