Cisco Chief on Selling Spree

Chambers retained 60,000 shares in the transaction, taking his total stock holding to 3.49 million.

A Cisco representative says the options involved are typically facing expiration and that a big portion of the proceeds go to taxes. The options, in this recent deal, were set to expire on May 1, 2007.

Critics point out that Chambers' big selling program coincides with Cisco's $40 billion stock buyback effort. This only highlights concerns that too much of the company's cash is flowing into the pockets of option-larded executives.

In February, Chambers sold 1.37 million shares for a net gain of $19.9 million. And in November, he netted $15.9 million. During the previous fiscal year ended in July 2005, Chambers sold 4.1 million shares, leaving him about $52.8 million after the cost of exercising the options.

"If you have to sell, then the 10b is the best way to do it," says Ellig. "But I've become a skeptic in the world of executive pay, given what's gone on these past few years. I think there is more than one way you can skin the 10b."