SAN JOSE, Calif., June 8, 2006 - At a regularly scheduled board meeting on June 7, 2006, Cisco Systems, Inc. adopted a board chairmanship succession plan stating that CEO John T. Chambers be designated to succeed John P. Morgridge as chairman, effective at the company's annual shareholder meeting on November 15, 2006. Chambers will retain his position as CEO. Morgridge, who announced last year that he would not stand for re-election to the board this year, will become Chairman Emeritus.
"Today's unanimous decision by the board of directors underscores our high level of confidence in John Chambers' leadership over his 15-year tenure at Cisco, and his ability to shape the future direction of the company," said John Morgridge, chairman of the board, Cisco Systems. "John's model for leadership evolution at Cisco has resulted in a world-class executive team with an unequaled industry track record and proven ability to achieve sustained profitable growth."
Also commenting on the succession plan, Lead Independent Director Carol Bartz said, "Serving at the discretion of shareholders, Cisco's board of directors consists of individuals of significant character and credibility, selected for their acumen and ability to challenge and add value to management. Throughout his tenure as president and CEO, John has served shareholders well, successfully navigating Cisco through both strong and challenging economic and industry climates. This experience, combined with Cisco's diverse, independent board continues the solid management and oversight of the company."
John Morgridge has served Cisco for over approximately 18 years, initially as CEO, and appointed to chairman of board in 1995. He steered the company through multiple corporate milestones, including its initial public filing in 1990, and helped set the culture of Cisco; one of innovation, empowerment, frugality and giving back. Throughout his tenure, Morgridge has been a champion of Cisco's charitable giving efforts and Network Academies. As chairman emeritus, his focus will center on the Cisco Foundation and the company's long-term commitment to basic human needs, responsible citizenship and access to education.
John Chambers has been president and CEO of Cisco Systems since January 1995. Since that time, Chambers has grown the company from approximately $1.2 billion in annual revenues to approximately $24.8 billion for fiscal year 2005, with market cap growth from approximately $10.4 billion in 1995 to approximately $121 billion today. Chambers joined Cisco in 1991 as senior vice president, Worldwide Sales and Operations. Prior to joining Cisco, he spent eight years at Wang Laboratories and six years with IBM. He holds a law degree and a bachelor of science/bachelor of arts degree in business from West Virginia University. He later received a masters of business administration degree in finance and management from Indiana University.
"I will be honored to serve Cisco's shareholders, customers, partners and employees as CEO and Chairman," said Chambers. "This decision reflects as much on me as it does on the leadership team at Cisco and our board of directors. We're building a management team for the 21st century that emphasizes collaborative leadership built on teamwork that drives innovation and speed of execution-I couldn't be more proud of what Cisco has accomplished as a team."
Cisco's board of directors currently consists of 12 members, nine of whom are independent. Carol A. Bartz, Executive Chairman, Autodesk, Inc. has been a member of the board since November 1996, and was appointed Lead Independent Director in November 2005. Other board members include: M. Michele Burns, Executive Vice President and Chief Financial Officer, Marsh & McLennan Companies, Inc.; Michael D. Capellas, former president and CEO, MCI; Larry R. Carter, senior vice president, Cisco Systems, Inc.; John T. Chambers, current president and CEO, Cisco Systems, Inc.; John L. Hennessy, Ph.D., president, Stanford University; Richard M. Kovacevich, chairman and CEO, Wells Fargo & Company; Roderick C. McGeary, chairman, Bearing Point, Inc.; James C. Morgan, chairman, Applied Materials, Inc.; John P. Morgridge, current chairman of the board, Cisco Systems, Inc.; Steven M. West, founder and partner, Emerging Company Partners; and Jerry Yang, co-founder, chief Yahoo! and director, Yahoo! Inc.
To learn more about Cisco's board and corporate governance practices, please visit the Corporate Governance section at investor.cisco.com.
