As incoming Cisco CEO Chuck Robbins builds his own leadership team, he’s making it worth it for executives of the old regime to turn in their resignations.
The two top executives who announced their departures on Monday, COO Gary Moore, and president Rob Lloyd are getting millions of dollars in their exit package, plus a lot of stock, according to a regulatory filing to the SEC.
Each of them are getting the equivalent of eighteen months of their annual base salary and target bonus award. For Lloyd, that’s a $US2.2 million cash payout. For Moore, it’s almost $US2.3 million.
They are also getting the bonuses they earned for sticking around until the end of Cisco’s fiscal 2015, which ends in July.
And they are getting restricted stock unit awards that would have vested though 2016.
Lloyd gets 289,863 stock units, worth $US8.4 million at Cisco’s current $US29 stock price.
Moore gets 298,700 stock units, worth nearly $US8.7 million.
Both of them had to agree not to work for any company Cisco considers a competitor for one year. That list includes a long list of obvious names like Arista Networks, HP, Dell and other companies that make network equipment. But it also includes one surprise name: Amazon Web Services.
Beyond that, both executives are entitled to “Retirement vesting” of performance-based restricted stock units of up to 272,600 stock units for Moore and 275,900 stock units for Lloyd. These will be available in September, 2017. Lloyd was with Cisco for about 20 years, and Moore for about 14.
Plus, they will get extra time to buy upcoming stock options.
And Cisco will pay them for their COBRA insurance payments, that’s another lump sum of $US27,000 for Moore and $US37,000 for Lloyd.