Cisco’s Shareholders Approve Say-on-Pay Resolution (Update2)

Nov. 13 (Bloomberg) -- Cisco Systems Inc.shareholders narrowly approved a proposal to give investors a nonbinding vote on executive pay at the networking-equipment company.

Thirty-four percent of shares outstanding voted in favor of the proposal, while 32 percent opposed and the rest abstained, said Terry Alberstein, a Cisco spokesman. Christian Brothers Investment Services Inc. sponsored the resolution.

So-called say-on-pay programs -- adopted by companies such as Microsoft Corp. and Verizon Communications Inc. -- are spreading amid anger over CEO pay packages and Wall Street bonuses. San Jose, California-based Cisco said the measure was unnecessary because shareholders have better ways to make their views known and because say-on-pay legislation will probably be passed in the near future.

“Cisco is committed to communicating openly with our shareholders and value their opinions,” Alberstein said. “Though Cisco shareholders are clearly divided on this issue, the board will study closely the various ways companies have implemented the say-on-pay proposals and develop an appropriate plan for Cisco in response to the shareholder vote.”

Cisco, the world’s biggest maker of networking gear, rose 31 cents to $23.71 at 4 p.m. New York time in Nasdaq Stock Market trading. The shares have gained 45 percent this year.

To contact the reporter on this story: Dina Bass in Seattle at dbass2@bloomberg.net

Last Updated: November 13, 2009 16:03 EST