Cisco CFO Plans to Step Down
August 12 2020 - 9:45PM
Dow Jones News
By Nina Trentmann and Mark Maurer
Cisco Systems Inc. on Wednesday said finance chief Kelly Kramer
plans to leave the network-equipment company after more than five
years in the position.
Ms. Kramer, who took on the role of chief financial officer in
January 2015, will stay on until a successor has been found and
will assist with the recruitment process, Chief Executive Chuck
Robbins said during the company's earnings call.
"Kelly has made the decision to retire from Cisco," Mr. Robbins
said, according to a transcript. Ms. Kramer didn't immediately
respond to a request for comment.
She joined the San Jose, Calif.-based company in 2012 as senior
vice president of corporate finance and became senior vice
president of business technology and operations finance before
ascending to the CFO position.
Before her time at Cisco, Ms. Kramer worked at General Electric
Co. for about 20 years, including a 10-year stint at the company's
health care arm.
Ms. Kramer led Cisco through dozens of acquisitions, including
most recently of Modcam, a video analytics company, and
ThousandEyes Inc., a network intelligence firm. Under her
leadership, Cisco developed a record of successfully integrating
other businesses.
"Kelly has led the effort to improve our financial performance,
focused on investor confidence, and helped position Cisco for
success," Mr. Robbins said on the earnings call.
It is not clear yet what Ms. Kramer's exit package will look
like. She made $13.6 million in total compensation in 2019, which
included a salary of $850,000. She earned a total of $8.8 million
in 2017 and $11.5 million in 2018, according to Cisco's most recent
proxy statement.
The news of her departure came as Cisco reported a 9% decline in
sales in its latest quarter and said it would restructure its
operations. The company didn't specify how many jobs it would shed
but forecast charges of about $900 million before taxes, according
to a filing with regulators.
Cisco cut costs earlier in the year amid declining sales and
said some customers had reduced technology investments because of
economic uncertainty and the impact of the coronavirus
pandemic.
A new CFO will have to develop strategies for revenue growth and
allocate funds to acquire new customers, said Amit Daryanani, an
analyst at advisory firm Evercore ISI.
"The timing of her leaving, while maybe not optimal, doesn't
reflect on the challenge of this company," Mr. Daryanani said,
referring to Ms. Kramer. "The challenges they have are revenue
centric," he added, pointing to the coronavirus pandemic and the
weakening of the U.S. economy.
The average tenure of chief financial officers at S&P 500
and Fortune 500 companies has been trending lower and stood at 4.46
years in 2019, down from 5.1 in 2018, according to the Crist|Kolder
Volatility Report, which tracks recruitment trends in corporate
leadership.
Write to Nina Trentmann and Mark Maurer at
Nina.Trentmann@wsj.com
and Mark. Maurer@wsj.com
(END) Dow Jones Newswires
August 12, 2020 21:30 ET (01:30 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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