Cisco Systems, Inc. (NASDAQ:CSCO) is making its top executives pay for the decline in revenues that the company is witnessing. The world’s largest networking equipment manufacturer wasn’t able to meet the revenue and profit target for this year that it set for itself earlier. Bloomberg recently published an article elaborating how Cisco Systems, Inc. (NASDAQ:CSCO)’s top executives had to take a pay-cut after the dismal performance of the company.
According to the article, Cisco Systems, Inc. (NASDAQ:CSCO)’s CEO, John Chambers saw his compensation declining by 22% to $16.5 million this year. In the financial year ending July 2014, Cisco Systems, Inc. (NASDAQ:CSCO) posted revenues of $47.1 billion, well below its target of $49.5 billion and operating income of $13.4 billion, again below the company’s target of $14 billion.
Though the base salary of Chambers remained unchanged at $1.1 million, he saw a significant decline in his stock award to $12.9 million from $15.9 million that he received last year. His non- equity incentive compensation also declined to $2.5 million from $4.5 million that he received last year.
It wasn’t only Chambers who saw his compensation declining, Cisco Systems, Inc. (NASDAQ:CSCO)’s COO & President, Guy Moore, and President of Development and Sales, Robert Lloyd’s salary took a hit as well. Moore’s compensation declined by 35% to $11.2 million and Lloyd’s compensation declined by 33% to $10.9 million.
“Cisco’s executive officers are compensated in a manner consistent with Cisco’s strategy, competitive practice, sound corporate governance principles, and shareholder interests and concerns,” John Earnhardt, spokesperson for Cisco Systems, Inc. (NASDAQ:CSCO),” was quoted as saying.
As of June 30, 2014, Donald Yacktman‘s Yacktman Asset Management over 62 million shares of Cisco Systems, Inc. (NASDAQ:CSCO).
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