This excerpt taken from the CSCO DEF 14A filed Sep 23, 2009.
Long-Term, Equity-Based Incentives
Mr. Lloyds total equity award grant date value for fiscal 2009 reflected in the table above includes the grant date value of an equity grant he received upon his promotion to his current role and retention equity grants he received as part of a group of retention grants made to a select group of key contributors. The aggregate grant date value of those awards comprised $5,217,765 of the value listed in the table above.
The total restricted stock units granted in fiscal 2009 to each named executive officer other than Mr. Lloyd, taking into account that no restricted stock units were granted pursuant to PRSU rights, represent grants generally in the range of the 10th percentile (15th percentile for Mr. Chambers) of the Updated Peer Group. By comparison, the above equity grants for fiscal 2008 represent grants generally in the range of the 75th percentile of the Initial Peer Group (between the 50th and 65th percentiles for Mr. Chambers).
The Compensation Committee considers these amounts to represent the compensation values attributable to each of the named executive officers for equity awards granted in the applicable fiscal year. These amounts differ from the amounts disclosed under Stock Awards and Option Awards in the Summary Compensation Table below, which reflect accounting-based equity values for grants that vest during a particular fiscal year, including grants made in prior years, rather than the total values of new awards granted in fiscal 2009 that are presented in the table above. These amounts should not be considered a
substitute for the amounts disclosed in the Summary Compensation Table. Awards of PRSU rights are included in the grant date value amounts using the value of the number of restricted stock units actually granted based on performance in the applicable fiscal year, which was 58% of target for fiscal 2008 and zero for fiscal 2009.
Other features of Ciscos executive compensation program include:
Compensation decisions and other details are discussed in the remainder of this Compensation Discussion and Analysis.