Continued layoffs are looming at Cisco, but CEO John Chambers has no reason to complain: He’s seen his compensation almost double.
According to Securities and Exchange Commission filings, Chambers’ annual compensation topped out at $21.05 million in fiscal 2013, up from $11.7 million the previous year. The company said his previous salary was “historically low” and the increase brought him more in line with his peers.
Still, we can’t believe the rank and file is happy. In August, Cisco announced plans to lay off 4,000 people, or 5 percent of its workforce, in an effort to improve profit margins, compete with its rivals and deal with decreasing demand for its products. These pink slips come on the heels of sizeable layoffs in 2012 and 2011. After the latest round of cuts, Cisco will have eliminated 12,300 jobs during the past two years, Bloomberg says.
The cuts are coming even though the company is hitting revenue targets and posting sizeable growth in profits. Net income grew to $9.98 billion in fiscal 2013 from $8 billion in financial 2012. However, Chambers has said that Cisco’s “slow and steady improvement” wasn’t moving at the pace the company wants.