Chambers John (John Chambers)

Chambers John (John Chambers)

Biography

John Chambers was born on August 23, 1949 in Cleveland, the State of Ohio, the USA.

In youth had a dyslexia – complex violation of reading and the letter (written language).

In 1971, having graduated from West Virginia University, received degree of the bachelor of humanitarian and natural sciences. Later, in 1974, received the doctor's degree in the field of law.

In 1975 received degree of the Master of Business Administration in Indiana University.

From 1982 to 1990 - within eight years worked in Wang Laboratories.

From 1976 to 1982 Chambers worked in IBM.

In 1991 began the work in Cisco as the vice president of division of Worldwide Sales and Operations. Later John Chambers was responsible for research and development, world sales, production, marketing and support.

In 1995 Chambers held positions of the president and chief executive officer of Cisco. Annual revenues of Cisco during the period since 1991 when Chambers joined the company, till 1995 when he was appointed the chief executive officer, increased more than six times – from $1.2 billion to $7.5 billion.

The annual compensation packet of the head of Cisco Systems John Chambers decreased almost by a third according to the results of the financial year which came to the end in July, 2011. For this promotional period the companies fell approximately to the same order.

The company stated this week that even if the operational objectives for the end of 2011 will be achieved, shareholder value will inevitably fall.

"Thus, the compensation packet was reduced. Council decided that any executive top manager of the company will not receive financial incentives based on 2011", the document says.

For the last financial year of the stock Cisco fell in price for 30%. Chambers is 62 years old, he heads the company on an extent of already 15 years. As a result at the end of 2011 its compensation packet will make $12.9 million against $18.9 million in 2010. Chambers's salary decreased by 2% to $375 thousand, but income from options which, on the contrary, increased by 53% to $12.5 million is the most part of his packet.

Chambers did not receive new options this year whereas in the past it was provided to him options for the amount of $5.7 million. He will also not receive a bonus for effective work which last year made $4.6 million.

This year Chambers implemented the strategy of cost reduction, having limited promotion and expansion on the new markets which do not make sufficient profit. In April business on production Flip Video was stopped, and in July the plan for reduction of 6.5 thousand employees (9% of staff of the company) was submitted.

The company seriously yielded to competitors, besides, to its position reeled because of cost reduction on IT in a public sector. For all financial year of Cisco earned $6.5 billion or $1.17 for an action at revenue in $43.2 billion the previous year the net profit of the company was $7.8 billion or $1.33 for an action at the total revenue of $40 billion.

The formula by which the compensation packet of top managers is calculated quite precisely reflects reality, but nevertheless is approximate. As the majority of packets includes actions, the exact amount of a packet depends on a status of the stock markets in the first several years after obtaining options.

On September 25, 2012 it became known that John Chambers can retire in 2-4 years. Cisco made a short list of 10 candidates for its post.

On May 4, 2015 it became known of John Chambers leaving from the CEO's post after 20 years of the management of the company. It will be replaced by one of veterans of the American producer – Chuck Robbins. Appointment becomes effective on July 26, 2015.

Achievements

• In 1997 John Chambers was called "The chief executive of the year" on survey results spent by the Electronic Business magazine. In January, 1997 he received from the prime minister of Japan an award for the efforts aimed at the development of trade between Japan and other countries.

• In the summer of 2009 John Chambers received the title Pioneer Business Leader-2009. The rank of the best innovator and leader of business for 2009 to the head of Cisco company was appropriated by Fund of formation of Silicon Valley. "John Chambers's contribution to development of education and technologies had a great influence on Silicon Valley and all modern world — the chief executive officer Fonda Muhammad Chadri noted — his activity changed to the best life of many people on our planet and gave to many students skills of the management of future economy".

Family

He is married, has two children

Other activity

Chambers worked in Bill Clinton's Committee on trade policy. Takes part in the social initiatives helping to recover a health care system and educations in the Chinese province of Sichuan which were destroyed as a result of earthquakes in the spring of 2008 the Vice-chairman of National council on infrastructure at the U.S. President George Bush (NIAC).

Chambers's donations for the Democratic Party of the USA made more than $180 thousand and more than $1 million – for Republican Party.

Links

• Chambers's page on the website Cisco