Cisco Systems has slashed its payments to chief executive officer John Chambers by 22 percent to $16.5 million in compensation for the company’s latest fiscal year.
The reduction in annual compensation was because the networking company didn’t meet revenue and operating income targets for the year that ended in July, said Cisco said in a filing yesterday with the U.S. Securities and Exchange Commission.
Cisco’s revenue dipped 3 percent to $47.1 billion in the latest fiscal year, the first decline in five years.
The world’s largest maker of networking equipment had operating income was $13.4 billion, short of the $14 billion target, Bloomberg reported.
Chambers, 65, who has been at the helm of Cisco for almost two decades, will retire by the end of fiscal 2016.
In August, Cisco said it would cut 6,000 jobs and forecast little to no sales growth.
Base salary of Chambers was $1.1 million. His stock awards declined to $12.9 million in fiscal 2014 from $15.2 million in the prior year, and his non-equity incentive compensation fell to $2.5 million from $4.7 million, according to the filing.
Annual compensation of Cisco president and chief operating officer Gary Moore fell 35 percent to $11.2 million, while Cisco president of development and sales Robert Lloyd received 33 percent less compensation to $10.9 million