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 Subscribe to Bloggers speak out on BradReese.Com Has John Chambers made a profit by transporting Cisco's Board of Directors on his private jet? Cisco CEO John Chambers has billed Cisco's shareholders $11.1 million at commercial charter rates for the use of his private jet.
Hummelstown, PA: Thu, 10/17/13 - 11:59pm View comments Update 10/21/2013 at 8:18am:
Update 10/18/2013 at 5:12pm:
According to Cisco DEF 14A filings with the SEC, since Fiscal Year 2009 Cisco CEO John Chambers has billed Cisco's shareholders $11.1 million at commercial charter rates for the use of his private jet. So exactly how profitable is the commercial charter rate for the Dassault Falcon 7X private jet owned by Chambers? Well, according to a February 13, 2013 Forbes Magazine story: The average hourly jet charter rate for Chambers' Dassault Falcon 7X is $7,865 per hour. And according to Cisco's most recent DEF 14A filing (page 60), John Chambers billed Cisco's shareholders $2.8 million for the use of his private jet during FY13. Dividing $2.8 million by $7,865 per hour would reasonably indicate that 356 hours worth of commercial charter flight time were billed to Cisco's shareholders during FY13 for the use of Chambers' private jet. To put that into better perspective, that would equal 9 weeks of 40 hour long flights (i.e. more than 2-months of continuous flying) that Cisco's shareholders were billed during FY13 for the use of Chambers' private jet.It also appears that Cisco's Board of Directors FLY FREE on Chambers's private jet while he simultaneously bills Cisco's shareholders commercial charter rates for flying Cisco's Board members for FREE.Personally, I find that interesting because Cisco's Conflict of Interest Policy (COI) clearly states:
So where possibly could Cisco's Board of Directors be flying for FREE on Chambers' private jet while he bills Cisco's shareholders commercial charter rates? Well according to a June 16, 2011 Wall Street Journal report:
"A Wall Street Journal review of FAA flight records found that dozens of jets operated by publicly traded corporations made 30% or more of their trips to or from resort destinations, sometimes more than 50%. Often, these were places where their top executives own homes. The review covered nearly every jet flight in the U.S. over the four-year period from 2007 to 2010."To analyze corporate flying patterns, the Journal obtained, via a Freedom of Information Act request, records of every private aircraft flight recorded in the FAA's air-traffic system from 2007 through 2010. These included flights previously blocked from public view. The Journal calculated the percentage of each plane's flights to a list of 300 locales it determined were more likely to be leisure destinations than business. That excluded major cities such as Miami, New York and Paris, and included spots like Palm Beach, Aspen, Colo., and the Bahamas."As long as it appears that Cisco's Board of Directors enjoy FREE FLIGHTS on Chambers' private jet at the expense of Cisco's shareholders, exactly how motivated will they ever be to appoint a new leader at Cisco? In my opinion, not motivated at all. Related stories: Why Cisco's Board of Directors should be replaced Wall Street PR: Cisco CEO Spends Lavishly Business Insider: The CEO Of Cisco Bills The Company When He Flies In His Own Private Jet Cisco CEO John Chambers celebrates $24 million payday The Wall Street Journal: America's Most Dysfunctional Boards
Network World: John Chambers slams Cisco with $2.3 million in private jet expense
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