Form 4: Cisco CFO Sells Shares for Tax Obligations

Cisco Systems' EVP and CFO, Mark Patterson, disposed of 3,639.796 shares of common stock to cover tax liabilities related to restricted stock unit awards.

Summary

• Mark Patterson, Executive Vice President and Chief Financial Officer of Cisco Systems, Inc. (CSCO), reported a transaction on May 10, 2026.
• The transaction involved the disposition of 3,639.796 shares of Cisco Common Stock at a price of $96.57 per share.
• These shares were withheld by the issuer for the payment of tax liability arising from the partial settlement of two restricted stock unit (RSU) awards.
• The original RSU awards were reported by Mr. Patterson in a Form 3 filed with the SEC on August 8, 2025.
• Following this transaction, Mr. Patterson beneficially owns 196,824.979 shares of Cisco Common Stock directly.
• The reported beneficial ownership includes 1,445.896 dividend equivalents accrued on unvested restricted stock units, with each equivalent representing one share of Cisco common stock.

Sentiment

Score: 5

Explanation: StockSavvy.ai views this as a neutral event, as the transaction is a standard tax-related disposition of shares following the vesting of restricted stock units, not an open market sale reflecting a change in investment thesis.

Future Outlook

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

Industry Context

StockSavvy.ai notes that tax-related dispositions of shares by executives upon the vesting of restricted stock units are a routine and common practice across the technology sector and do not typically signal a change in management's sentiment towards the company's operational or financial prospects. This is a standard mechanism for executives to meet tax obligations arising from their compensation.

Comparison to Industry Standards

• The practice of withholding shares to cover tax liabilities upon the vesting of restricted stock units is a standard component of executive compensation plans across publicly traded companies, particularly within the technology industry.
• This transaction aligns with common corporate governance practices for managing equity compensation and tax obligations, similar to what is observed at peer companies like Microsoft, Apple, or Google, where executives frequently report such dispositions.

Stakeholder Impact

• Shareholders: Minimal direct impact as this is a routine tax-related transaction and not a discretionary sale, which typically does not influence market perception or share price significantly.

Key Dates

Recommendation

This Form 4 reports a routine disposition of shares by an executive to cover tax obligations upon the vesting of restricted stock units. It does not reflect a discretionary sale or a change in the executive's investment thesis, thus it does not warrant a change in investment recommendation based solely on this filing.

Keywords

Cisco Systems, CSCO, Mark Patterson, Form 4, Insider Transaction, Restricted Stock Units, Tax Withholding, Executive Compensation