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Executive pay down at Cisco

Ian Grant
Monday 07 September 2009 05:05

Cisco boss CEO John Chambers will receive a bonus of just over $2m this year.

Cisco said directors will have to get by on sharply reduced bonuses because they failed to match previous years' performance at the network firm.

Filings with the Securities Exchange Commission late last week showed that Cisco CFO Frank Calderoni will receive $900,000.

Chief globalisation officer Wim Elfrink gets $1m, and operations boss Randy Pond takes home $900,000. Former worldwide operations head and now executive advisor Richard Justice receives $750,000.

Robert Lloyd, who took over from Justice, receives a discretionary cash incentive award of $900,000 "because he did not become an executive officer until the fourth quarter of the fiscal year".

Cisco' board said the bonuses were substantially down on last year, but were paid to reward "the company's solid financial performance during a period of tough economic challenges, and each individual's key role in driving operational excellence and strong profitability".

For the fist nine months, Cisco's sales fell from $29.2bn to $27.6bn, with net income down $1bn from $6bn to $5bn.

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