Cisco CEO Chuck Robbins (NASDAQ:CSCO) is optimistic that corporate tax policy will get a major overhaul. Speaking on FOX Business Network’s Mornings with Maria, in his first interview since taking over the tech giant eleven weeks ago, Robbins discussed the progressed being made in Washington.
“When you think about what is needed for the infrastructure in the United States there is work being done, (Rep.) Paul Ryan is helping lead this initiative where we would actually connect the repatriation of these funds with the establishment of this infrastructure fund.”
U.S. companies have about $2.1 trillion in profits parked in offshore funds, according to a report from the Center for Tax Justice and the U.S. Public Interest Research Group Education Fund. Cisco’s portion of that is about $60 billion.
“We need to reform tax policy so that it makes U.S. companies more competitive on a global scale. And I think that there might be an opportunity right now and we’re optimistic.” Said Robbins.
Along with his efforts in Washington, Robbins is also looking for ways to grow Cisco’s bottom line.
“Well we’re looking at where our cash can drive future growth and we’ll look at acquisitions as we always have in that space, we’ve also committed to our shareholders to return 50% of free cash flow through dividends and buybacks and we’re committed to that as well.” Cisco's dividend currently yields about 3%.
He’s also committed to advancing how his customers use data by focusing on simplicity and clarity. “Well we actually talk about the Internet of Everything which is a combination of the devices, the people, the process, the data, because it’s more than just connecting, connecting new things really doesn’t have any inherent value. And every company has to think about how you change your processes based on these connections, what you do with that data.”