To: RetiredNow who wrote (74708 ) 12/20/2007 4:58:18 PM From: Sr K Read Replies (2) | Respond to of 77400 Here's a [t]CSCO[/t] risk that wasn't "nil":bloomberg.com Cisco's Giancarlo, Seen as No. 2 Official, Will Leave (Update1) By Vivek Shankar and Ari Levy Dec. 20 (Bloomberg) -- Cisco Systems Inc. development chief Charles Giancarlo, often mentioned as a successor to Chief Executive Officer John Chambers, plans to resign to join private equity firm Silver Lake. Giancarlo, 50, who joined Cisco after an acquisition 14 years ago, once led its biggest division and its acquisition strategy. Cisco, the biggest maker of networking equipment, named a seven-person team to take over his product-development roles. His departure throws Cisco's succession plans into question. Analysts including Lehman Brothers Holdings Inc.'s Inder Singh had identified Giancarlo as the next CEO as early as 2005, and he's the second top official to decide to leave this year, following finance chief Dennis Powell. ``It doesn't look like John Chambers is going anywhere, so it's not a big issue but it's certainly a surprise to see Charlie go,'' said Singh, who rates the shares ``overweight.'' ``The question for Cisco is what's the succession plan look like.'' Chambers told Cisco's board in the first quarter of 2007 that he plans to remain in his current position for three to five more years. He reiterated today he plans to hand over the reins as CEO in the next three to five years. Giancarlo joined when Cisco bought Kalpana Inc. for $200 million to enter the market for switches, which later became its top moneymaker. He then managed global alliances, acquisitions, and the switching, voice and storage groups. In 2005, he was promoted to chief development officer and caught analysts' attention. Cisco rose 9 cents to $28.28 in Nasdaq Stock Market trading today. The shares have climbed 3.5 percent this year. Giancarlo is joining Silver Lake as a partner and will have the title of managing director, he said on a conference call. His last day at Cisco is Dec. 31. To contact the reporter on this story: Vivek Shankar in San Francisco at vshankar3@bloomberg.net ; Ari Levy in San Francisco at alevy5@bloomberg.net Last Updated: December 20, 2007 16:42 EST