Cisco Systems CEO Chambers Receives 2 Million Stock Options
John Chambers , chief executive of Cisco Systems Inc., received two million stock options to supplement his annual salary of $1.
The San Jose, Calif., networking-equipment company disclosed in a filing with the Securities and Exchange Commission that the price of Mr. Chambers's options was $18.51. In 4 p.m. Nasdaq stock market trading Thursday, Cisco's shares closed at $17.77. The options vest over five years.
Since April 2001, Mr. Chambers has received a salary of only $1 with no bonus. He has said his compensation won't change "until the market recognizes Cisco's turnaround."
The new options grant is Mr. Chambers's second of the year, after a grant of two million options in April. Mr. Chambers also received four million options in 2002.
Cisco has opposed recent efforts to require companies to report the cost of stock options as an expense on their income statements. In a footnote in its report for the quarter ended April 26, Cisco said if options had been included as an expense, the company's net income for the quarter would have been reduced 29%, from $987 million, or 14 cents a share, to $696 million, or 10 cents a share. Cisco grants options to all employees, with approximately 80% of the awards going to those below the level of vice president.
In a statement, Cisco said it made the grant to Mr. Chambers "to recognize his continued long-term commitment to Cisco" and said, "This grant is in no way a reflection of Cisco's performance during the current quarter."
思科钱伯斯年薪仍是1美元，但获400万股期权
思科系统(Cisco Systems Inc., CSCO, 简称：思科)首席执行长钱伯斯(John Chambers)在1美元的年薪之外，还得到了200万股股票期权。
思科在提交美国证券交易委员会(Securities and Exchange Commission, 简称SEC)的文件中披露，钱伯斯所获股票期权价格为每股18.51美元，有效期5年。周四那斯达克市场上思科股价收于17.77美元。
自2001年4月以来，钱伯斯每年的年薪只有1美元，而且没有任何奖金。他曾说过，除非市场承认思科的业绩有了根本性的扭转，否则他就一直拿这样的报酬。
新的这批股票期权是钱伯斯今年得到的第二批股票期权。他在今年4月已经获授200万股股票的期权。钱伯斯在2002年也收到400万股股票期权。
思科反对将股票期权的成本在损益表上计为费用。在公司截至4月26日财政季度的财务报表附注中，思科称，如果将股票期权计入费用，该公司当季9.87亿美元的净利润将减少29%至6.96亿美元，相当于每股收益由14美分减至10美分。思科向所有员工发放股票期权，其中约80%是给副总裁以下员工的。
思科在一份声明中称，公司授予钱伯斯股票期权是对他对公司长期贡献的认可，并不反映思科本财政季度的业绩。
