Cisco CEO John Chambers saw his compensation nearly double this year, topping $21 million. His salary more than tripled, and the value of his stock awards doubled.
Cisco CEO John Chambers saw his compensation nearly double this year, topping $21 million. A year ago, he received $11.7 million.
The biggest boost to his pay came in the form of stock awards valued at $15.2 million. Last year, Chambers’ stock awards were worth $7.3 million. Chambers also received a $4.7 million cash bonus, up 19% from the prior year.
[[CEO PAY: Cash, stock awards, perks add up to big pay packages]]
Chambers’ salary more than tripled from $375,000 in 2012 to $1.1 million in 2013. In justifying the salary boost, Cisco noted that Chambers base salary was “well below” the 25th percentile when compared to his peers’ salaries and that he hadn’t received a salary increase since fiscal 2008.
“In September 2012, the Committee increased Mr. Chambers’ historically low base salary to $1,100,000, which is closer to the median of the Peer Group, so that the total of his base salary and target bonus is more consistent with the Peer Group’s approach to total cash compensation,” the company reported in its proxy statement.
The remainder of Chamber’s 2013 pay package consists of $11,769 in perks and other compensation.
Cisco’s net income increased 24% to $10 billion in its 2013 fiscal year, ended July 27. Total revenue was $48.6 billion, up 6% from $46.1 billion. In August, at the start of the current fiscal year, Cisco announced plans to cut 4,000 jobs, or about 5% of its workforce, to reduce costs and focus on key business areas.
Total pay for Chambers is calculated using data supplied in a proxy statement filed with the SEC on Sept. 30. The following figures are taken from the summary compensation table: salary, stock 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.