Cisco Systems Inc. (Nasdaq: CSCO) chief John Chambers is getting a $349,999 pay raise, according to documents the company filed with the Securities and Exchange Commission (SEC) on Tuesday.
Since 2001, Chambers has taken a salary of $1 a year, but his yearly options grants are worth tens of millions (see Cisco Renews Options Parade).
But in pure salary terms, that's a 35 million percent pay rise. Even Larry, the Light Reading Attack Monkey, isn't in line for that sort of wage hike (see Hello, Larry!).
"In recognition of Cisco’s increased revenues and earnings and the increase in shareholder value since the end of fiscal 2002, the Committee determined in July 2004 that it was appropriate to increase Mr. Chambers’ annual base salary as of the beginning of fiscal 2005," the filing states.
"The Committee determined that Mr. Chambers’ annual base salary would be reinstated to the fiscal year 2001 level of $350,000."
Rumor has it that Chambers has also agreed to remove the tip jar from the executive boardroom.
Here are some other recent appointments, disappointments, and related developments in the telecom employment universe:
Last year, the Sisters' proposal concerning a possible review of Cisco's executive compensation policy was voted down. But the Sisters will return again, asking for nearly the same thing (see No Nun Bashing at Cisco).
The Sisters want the company to produce a report by January 1, 2005, that evaluates whether Cisco's executive pay should be modified. They also want an explanation as to whether layoffs or the level of pay of the lowest paid workers should cause any adjustment to executive pay.
Cisco's board, naturally, is recommending a vote against the proposal.
Naden's most recent "volume" experience ended unfortunately, as he was chief operating officer for now defunct network processor firm Silicon Access Networks Inc. (see 2003 Top Ten: Startup Flameouts). His resumé includes stints at Atheros Communications Inc. (Nasdaq: ATHR), Stream Machines (acquired by Cirrus Logic Inc. (Nasdaq: CRUS)), VLSI Technology Inc. (acquired by Royal Philips Electronics N.V. (NYSE: PHG; Amsterdam: PHI), and Texas Instruments Inc. (NYSE: TXN).
SpectraSwitch's products, including variable optical attenuators and small optical switches, had made it to market. Some received Telcordia qualification and appeared in customer demonstrations at OFC. But the volumes the company had expected -- hundreds of thousands of units per year -- were never reached.
"Our customers' products [that is, components and subsystems vendors] are being adopted at a slow rate, and the time it would take to ramp up to those numbers was too long for our VCs to stomach," says CEO Lindsay Austin. "They decided they would rather put their money in a bigger market."
SpectraSwitch ran from the Reaper in 2002 by raising $7.5 million from Advanced Technology Ventures (ATV) and NIF Ventures, bringing its funding total to around $36.5 million (see SpectraSwitch Takes a Holiday and SpectraSwitch Scores $7.5M). The company had 10 employees upon calling it quits, Austin says.
If nothing else, the last item is a nice signal that this column should end for now. But before we go, here are some of the other notable hirings and firings of late:
- Agere Wields Jobs Axe
- Market Yawns at Motorola Cuts
- Lucent Cuts Target INS
- CoSine to Cut Nearly Everybody
- Net2Phone Shuffles CEO, Board
- General Bandwidth Drafts New CEO
- Band-X Exits IP Market
- Qwest Quenches Fraud Probe
- Telcordia: Bye Bye Borden
- Telcordia CEO $trikes $ell-Off Deal
- Nortel's Owens Joins Fat Cat Club
That's all for this edition of Headcount. As ever, send your employment related news to [email protected]. — Phil Harvey, News Editor, and Craig Matsumoto, Senior Editor, Light Reading