Chambers Becomes Cisco Chairman

Chambers became chairman and CEO of the networking company effective Nov. 15. He dropped his role as president after Cisco's board voted to amend the company's bylaws to separate the offices of CEO and president. Cisco had unveiled its chairman succession plan in June and disclosed the bylaw change in a regulatory filing Thursday.

Earlier this week, Chambers was named to CRN's annual Top 25 ranking of the industry's most influential executives.

At a Cisco shareholders meeting on Nov. 15, Chambers greeted attendees as the company's president and CEO and introduced Mortgridge as chairman but told the audience that "effective later today," Morgridge would leave the board and assume the title of chairman emeritus. In that role, Morgridge will focus on Cisco's philanthropic arm, the Cisco Systems Foundation.

"I want to thank you for so many contributions at our company. The success is off the charts, taking market capitalization from zero to $162 billion. I think there are maybe five people in the world who have ever done that," Chambers told Morgridge during his opening address at the meeting. "You have also made a difference in our culture."

Morgridge joined Cisco in 1988 as president and CEO and took the company public in 1990. He was named chairman in 1995. At the same time, Chambers was named to succeed him as president and CEO.

James Morgan, chairman of Applied Materials, also has retired from the Cisco board.

Cisco earlier this month reported earnings growth of nearly 28 percent and revenue growth of nearly 25 percent for its fiscal 2007 first quarter. During the period, the San Jose, Calif.-based company's earnings rose to $1.61 billion, and revenue climbed to $8.18 billion.