CEO John Chambers received compensation valued at $12.9 million in Cisco's 2011 fiscal year, a period when the company restructured operations, shuttered its Flip videocam business and eliminated more than 12,000 jobs. His total pay package is down 32% compared to 2010, when Chambers received $18.9 million, according to documents filed this week with the U.S. Securities and Exchange Commission.
CEO PAYDAY: What tech's top execs raked in for 2010
Chambers was paid a $375,000 salary, a decrease of roughly 2% from $382,212 in 2010. He didn't receive a performance-based cash bonus. In 2010, his bonus was $4.6 million.
Chambers' 2011 pay package also includes stock awards valued at $12.5 million. As reported to the SEC, Chambers' total equity awards are down 10% compared to 2010, when he received awards valued at $13.9 million.
Half of Chambers' $12.5 million equity award was forfeited, however, when Cisco's compensation committee decided not to award its highest executive officers with cash incentives or performance-based stock units for fiscal 2011. As explained in Cisco's proxy statement:
"Although Cisco substantially achieved its target operational performance goals for its cash incentive and its performance-based equity incentive awards, shareholder value eroded in fiscal 2011. 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."
Chambers also received a modest $11,025 in perks and other compensation, which was attributed to a 401(k) company match.
The company, meanwhile, grew sales but saw net income drop in its 2011 fiscal year ended July 30. Revenue came in at $43.2 billion, a gain of nearly 8% compared to $40 billion in 2010. Net income totaled $6.5 billion, which is down 16% from $7.8 billion in the prior year. On a per-share basis, Cisco earned $1.17 per share in 2011, compared to $1.33 per share in the prior year.
Chambers' total pay is calculated using data supplied in a proxy statement filed with the SEC on Oct. 18. The following figures are taken from the summary compensation table: salary, stock awards, option awards, non-equity incentive place compensation (performance-based cash bonus), and all other compensation. The estimated value of equity awards represents the grant date fair value for stock awards and stock options granted during the fiscal year.
Read more about lan and wan in Network World's LAN & WAN section.