Cisco Chief on Selling Spree

Prearranged insider stock sales are emerging as perhaps the sweetest executive perk since the Gulfstream jet.

Executive pay has grabbed headlines in recent months, thanks in part to possible stock-option manipulation at numerous companies. But fat cats like Cisco (CSCO Quote) chief John Chambers show there's an easier way to help yourself to shareholder wealth.

Through a fully disclosed and transparent 10b5-1 plan, Chambers has availed himself to a swimming pool-sized pot of cream. Since his selling started on Aug. 17, 2004, Chambers has pocketed $98.3 million in net proceeds by selling 8.1 million shares.

Unlike so-called option backdating, 10b5-1 plans raise no tax or disclosure issues. But that doesn't mean they're good for shareholders, some observers say. Since Chambers enrolled in his 10b5-1, Cisco shares are up 8%, trailing the 16% gain in the S&P 500. ...