BIG NEWS!!!
Cisco CEO to sell stock for $89 million
By Tom Bemis, CBS MarketWatch
Last Update: 9:06 PM ET Feb 20, 1999 NewsWatch
SAN JOSE, Calif. (CBS.MW) -- Cisco Systems CEO John Chambers will make about $89 million from the sale of 850,000 shares of stock in the high-flying networking company. Chambers filed to sell the shares recently, the San Jose Mercury News reported. Coupled with a sale last fall of 350,000 shares Chambers will have made about $140 million in the past six months from exercising stock options and selling stock, the paper reported.
That rivals the exalted company of Intel Corp. (INTC) Chairman Andy Grove, who pocketed $94.6 million in 1996, as well as Cisco (CSCO) Chairman John Morgridge and Intel CEO Craig Barrett, who reaped $61.5 million and $54.6 million respectively last year.
It all remains paltry compared with Microsoft Chairman Bill Gates, who filed to sell 3.5 million shares, worth about $550 million this month.
Stock options give holders the right, but not the obligation, to buy or sell a stock within a specific period of time. They are a major element of pay packages in Silicon Valley where they are used to give hard-to-find employees an incentive to stay with a company.
Shares of Cisco rose 15/16 to close at 97 1/8 Friday.
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