Sunday, July 7, 2019

Cisco Systems Top-Tier Executives Average Pay Raise Was a Huge 16.0% Per Year During the Past 10 Years (2009-2018). But Having a Cisco Systems Executive as Board Chair During 9 of These 10 Years Appeared To Cause the Board of Directors To Be Out of Touch and There Appeared To Be Huge Grade Inflation of Top-Tier Executive Performance, Which Not Just Hurts Stockholders, But Also Results in Huge Annual Pay Raise Inequality Expansion.

From Company Proxy Statement filings with the SEC, below are the Cisco Systems Top-Tier Executives Annual Total Compensation for each of two consecutive full years of employment for the most recent ten years.

Cisco Systems is the 27th Dow Industrial Company I have researched so far on Top-Tier Executives Average Long-term % Pay Raises Per Year.   

To fix Income Inequality driven mainly by Company and its Board of Director choices on Percentage Annual Pay Raises, the US Government should step in and pass wisely-designed Fair Pay Raise Income Inequality Narrowing Company tax incentives ..... the carrot ..... and Company wise tax disincentives ..... the stick.  

And the continuing annual net tax revenues raised by the US Government here should be set up in a separate fund to be used only for wise additional income inequality narrowing initiatives.  This fund should be run by an outside group made up entirely of minorities harmed the most by Income Inequality Expansion of the past decades  .....all women, all blacks, all Latinos, all other non-white people, all past and present union members, all LGBTQ, all non-employee contract workers and all middle and lower income people of all ages.

Also, the US Government should require all US Corporate Boards to include at least one worker representative and to exclude any Company Executive. 

I will continue this same research for the 3 remaining Dow Companies (All Technology Cos) and then turn my attention to many other large US Companies to get a better handle on just why the US has such massive continuing Income Inequality Expansion ..... it appears to be predominantly about the relative annual pay raise percentages.


FYE FYE FYE FYE FYE FYE FYE FYE FYE FYE
July July July July July July July July July July
Cisco Systems 2018 2017 2017 2016 2016 2015 2015 2014 2014 2013
Top-Tier Total Total Total Total Total Total Total Total Total Total
Executive Comp Comp Comp Comp Comp Comp Comp Comp Comp Comp
$ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s
Charles Robbins Chairman and CEO     21,284     16,754     16,754     16,040  N/A   N/A 
Kelly Kramer EVP and CFO     11,440       8,804       8,804       9,058       9,058       8,473  N/A   N/A 
David Goeckeler EVP Networking & Security Bus  N/A   N/A 
Maria Martinez EVPChiefCustomeExperience Officer  N/A   N/A 
Gerri Elliott EVP Chief Sales&Marketing Officer  N/A   N/A 
Chris Dedicoat EVP WW Sales and Field Ops       7,409       7,834  N/A   N/A     
John Chambers Executive Chairman  N/A   N/A        6,910       9,860       9,860     19,621     19,621     16,488     16,488     21,050
Pankaj Patel Former EVP Global Engineering       8,498     13,011     13,011       8,629  N/A   N/A 
Frank Calderoni Former VP CFO     27,181       9,278       9,278     11,068
Gary Moore Former President and COO     26,833     11,196     11,196     17,234
Robert Lloyd Former President Developmt&Sales     26,517     10,935     10,935     16,229
Totals     32,724     25,558     39,877     42,792     27,416     41,105   113,163     56,526     47,897     65,581
Annual % Change 28.0% -6.8% -33.3% 100.2% -27.0%
FYE FYE FYE FYE FYE FYE FYE FYE FYE FYE
July July July July July July July July July July
Cisco Systems 2013 2012 2012 2011 2011 2010 2010 2009 2009 2008
Top-Tier Total Total Total Total Total Total Total Total Total Total
Executive Comp Comp Comp Comp Comp Comp Comp Comp Comp Comp
$ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s
John Chambers Executive Chairman     21,050     11,688     11,688     12,886     12,886     18,872     18,872       9,158       9,158     17,052
Frank Calderoni Former VP CFO     11,068       5,033       5,033       7,888       7,888     10,151     10,151       4,502       4,502       6,931
Gary Moore Former President and COO     17,234       7,250       7,250     11,253  N/A   N/A     
Robert Lloyd Former President Developmt&Sales     16,229       6,306       6,306       7,922       7,922     10,291     10,291       9,294  N/A   N/A 
Wim Elfrink EVP       6,056     11,944     11,944     15,744     15,744       8,245       8,245     12,837
Randy Pond EVP       8,048     10,357     10,357       5,401       5,401       9,120
Totals     65,581     30,277     36,333     51,893     48,688     65,415     65,415     36,600     27,306     45,940
Annual % Change 116.6% -30.0% -25.6% 78.7% -40.6%
10 Year Avg Per Year % Change 16.0%