SAN JOSE, Calif., September 14, 2006 - Cisco Systems, Inc. today announced that James C. Morgan has informed the company of his decision to retire from its board of directors and will not stand for re-election. Morgan, 68, will continue to serve as a Director until the company's Annual Meeting of Shareholders to be held November 15, 2006.
"Jim has been a tremendous asset to Cisco for many years, providing seasoned leadership counsel and a deep understanding of technology investment cycles and innovation strategies from his decades of experience at the helm of Applied Materials," said John Morgridge, chairman of the board, Cisco Systems, Inc. "We thank him for the long-term dedication to his role on the board, and for the value he's provided to Cisco management and shareholders."
"Serving on the Cisco board has been a very important experience for me. At this time in my life, I believe it is now important to concentrate more of my effort on other personal priorities including the Morgan Family Foundation," said Morgan. "Cisco is a great company, with an even greater opportunity ahead as the expanding role of the network accelerates the company's growth opportunities. I have tremendous confidence that John Chambers will continue to be a great leader as chairman and CEO and fully support the company's management and strategic direction."
Morgan has been a member of the Cisco board of directors since January 1998. His current role includes serving as chair of the investment/finance committee, as well as member of the compensation and management development committee and the nomination and governance committee. He has served as chairman of the board of Applied Materials, Inc. since 1987. Morgan held the position of chief executive officer of Applied Materials from 1977 to 2003 and was previously a senior partner with WestVen Management, a private venture capital partnership affiliated with Bank of America Corp.
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.
As of Cisco's Annual Meeting of Shareholders on November 15, 2006, Cisco's board of directors will consist of 10 members. 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 2006 annual shareholder meeting. Chambers will retain his position as CEO. Morgridge, who under a board age policy adopted last year, will not stand for re-election to the board this year and will become Chairman Emeritus.
To learn more about Cisco's board and corporate governance practices, please visit the Corporate Governance section at investor.cisco.com.
