Optical/IP Networks

Subtract Another Cisco Name

6:40 AM -- Reports on Monday said Cisco Systems Inc. (Nasdaq: CSCO)'s top mergers-and-acquisitions executive, Charles Carmel, has left the company for private equity firm Warburg Pincus .

Carmel came from the investment banking sector in the first place -- Goldman Sachs & Co. -- so the destination isn't that surprising. What's noteworthy, of course, is that Cisco is expected to lose a few notable executives during this restructuring, whether they're reorganized out of the company or choose to leave. (See Cisco Simplifies; Cuts 6,500 Jobs, Cisco's Videoscape Leader Resigns and Who Else Is Exiting Cisco?)

Carmel certainly counts as noteworthy. His highlight reel at Cisco includes two big acquisitions: WebEx and Tandberg. (See Cisco Bets $3B on Tandberg and Will WebEx Change Cisco?)

Now, Cisco isn't done acquiring things, as shown with Monday's small deal with Comptel Corp. (Nasdaq, Helsinki: CTL1V). It's even possible that Cisco would favor large acquisitions that serve its five priority areas; that's a possible interpretation of CEO John Chambers's pledge to move more quickly, said Yankee Group Research Inc. analyst Zeus Kerravala after a Chambers keynote last month. (See Cisco, Comptel Strike a SPIT Deal and Chambers Promises a Simpler Cisco.)

In any event, the M&A machine will be downshifted for a little while, so Cisco can afford to lighten the roster in that department. Carmel's replacement will be his top lieutenant, Hilton Romanski.

— Craig Matsumoto, West Coast Editor, Light Reading

COMMENTS Add Comment
DCITDave 12/5/2012 | 4:55:37 PM
re: Subtract Another Cisco Name

The stock has been flat for a decade. And how odd is it that a stock tied so closely to the Internet, which is growing like crazy, can't see to get moving?

The company keeps all the cash invested in it and won't pay $$ back to shareholders (well, they just started a dividend. Under duress.).

Talented execs get so high on the org chart then leave for some reason.

Management sells their personal shares (bought at a discount) and the company buys it back at specified intervals. So management rakes in $$ and shareholders just watch.

The company's growth strategy is to buy stuff. Same as its R&D strategy.

If you're looking at a company to invest in you want to buy a good story. The story of Cisco needs a lot of work. Anyone else feel that way?

Sign In