Ralph Nader Criticizes Cisco’s Treatment of Shareholders
Ralph Nader, the relentless and long-time consumer advocate and owner of 18,000 shares of Cisco (NASDAQ:CSCO), took the executive leadership to task for failing to provide a significant stock dividend to shareholders.
The first dividend was given in 2010 for six cents a share. Nader and other shareholders are asking for a dividend of 50 cents a year, plus a special one-time $1 dividend.
Nader pointed out that shares hit a peak of $82 in 2000, and now those shares stand at $19. Yet at the same time, the company’s profits continue to climb.
Nader blames CEO John Chambers and his tendency for stock buybacks for this situation. Nader points out that the company is sitting on $45 billion in cash.
One stockholder in North Carolina wrote the following: “Management is hoarding cash. (I’m) afraid they will make another boneheaded acquisition, to the detriment of the company. (I) will happily support increase in dividend, special dividend, a change in management, or shake-up of the board. The company doesn’t seem to have a vision that works.”