Form 4: Cisco CFO Mark Patterson Reports Stock Transactions

Cisco's EVP and CFO, Mark Patterson, reported the settlement of performance-based restricted stock units and the subsequent sale of shares to cover tax liabilities.

Summary

• Mark Patterson, Executive Vice President and Chief Financial Officer of Cisco Systems, Inc., reported changes in his beneficial ownership of the company's common stock.
• On November 10, 2025, Patterson acquired 74,492.385 shares of common stock at a price of $0.
• This acquisition resulted from the settlement of two performance-based restricted stock unit (PRSU) awards, originally granted on October 11, 2022, after the satisfaction of performance metrics over a three-year period, and included accrued dividend equivalents.
• On the same date, Patterson disposed of 44,713.952 shares of common stock at a price of $71.07 per share.
• These disposed shares were withheld to cover tax liabilities associated with the settlement of the PRSU awards, the partial settlement of other restricted stock unit awards (originally reported in a Form 3 filed August 8, 2025), and dividend equivalents accrued on the PRSU awards.
• Following these transactions, Patterson's direct beneficial ownership of Cisco common stock stands at 277,812.684 shares.

Sentiment

Score: 7

Explanation: The settlement of performance-based restricted stock units indicates that the company met its performance targets, which is a positive signal. The subsequent sale of shares for tax purposes is a routine event and does not reflect a negative sentiment towards the company.

Positives

• The settlement of performance-based restricted stock units indicates that Cisco met its performance metrics over the three-year period from October 2022 to November 2025, signaling positive operational results.
• The acquisition of 74,492.385 shares at a $0 cost effectively increases the CFO's direct stake in the company, further aligning his interests with those of shareholders.

Negatives

• The disposition of 44,713.952 shares to cover tax liabilities reduces the CFO's overall direct beneficial ownership, although this is a standard and expected event upon the vesting of equity awards.

Future Outlook

This Form 4 filing does not contain any forward-looking statements or guidance regarding the company's future performance or outlook.

Industry Context

This Form 4 filing reflects standard executive compensation practices within the technology industry, where performance-based restricted stock units are a common component of long-term incentive plans for senior management. The vesting of such awards is contingent on achieving specific company performance targets.

Comparison to Industry Standards

• The use of performance-based restricted stock units (PRSUs) as a significant component of executive compensation is a common practice across large technology companies, aligning executive incentives with long-term shareholder value creation.
• The subsequent sale of shares to cover tax obligations upon vesting is also a standard and expected procedure for equity compensation in the industry.

Stakeholder Impact

• Shareholders: The vesting of performance-based restricted stock units suggests that the company achieved its performance targets, which is a positive indicator for shareholder value.
• Management: Mark Patterson's compensation structure is being realized as planned, reflecting the successful completion of performance objectives.

Key Dates

Recommendation

This Form 4 filing details a routine executive compensation event involving the vesting of performance-based restricted stock units and the subsequent sale of shares to cover tax obligations. While the vesting indicates successful achievement of performance metrics, which is a positive, the transaction itself does not provide new fundamental information to warrant a change in investment recommendation. It is a standard part of executive compensation and not indicative of a change in company outlook or a significant shift in insider sentiment beyond the planned compensation structure.

Keywords

Cisco, CSCO, Mark Patterson, Form 4, Insider Transaction, Executive Compensation, Restricted Stock Units, Performance-Based RSUs, Beneficial Ownership