Cisco's Q4'FY11 Press Release filed with the U.S. Securities and Exchange Commission triumphantly stated:
"During the fourth quarter of fiscal 2011, Cisco repurchased 95 million shares of common stock under the stock repurchase program at an average price of $15.85 per share for an aggregate purchase price of $1.5 billion."
However, it appears to me that Cisco's restructuring announced at the beginning of Cisco's Q4'FY11 has turned into a financial windfall for Cisco CEO John Chambers and his management team.
How so?
Well, according to Cisco's Q4'FY11 Press Release and Cisco's Q3'FY11 Press Release filed with the U.S. Securities and Exchange Commission, the number of outstanding common shares at the end of Cisco's Q4'FY11 only declined by a mere -30 million shares (5,508 - 5,478 = 30) from the end of Cisco's Q3'FY11.
That means a whopping 65 million shares (i.e. 68%) of Cisco's Q4'FY11 95 million share buyback went to support the dilutive management compensation practices of Cisco CEO John Chambers.
*Source: U.S. Securities and Exchange Commission
