Form 4: Calix Executive Granted Stock Options Following Performance Criteria Achievement

John Matthew Collins, Chief Commercial Ops Officer at Calix, Inc., was granted stock options after performance criteria were met, as determined by the Talent and Compensation Committee.

Summary

• On January 31, 2025, John Matthew Collins, Chief Commercial Ops Officer of Calix, Inc., was granted stock options.
• The Talent and Compensation Committee determined that performance criteria were met for two separate stock option grants from February 8, 2024.
• The first grant involved a performance-based stock option to purchase 225,000 shares, with 47.9% of the grant's criteria achieved, resulting in 107,775 shares remaining subject to the option.
• The second grant involved a performance-based option to purchase 75,000 shares, with 91.8% of the grant's criteria achieved, resulting in 68,850 shares remaining subject to the option.
• A third option for 195,000 shares was granted on January 31, 2025.
• The options vest over time, with initial vesting dates on February 8, 2025, and January 31, 2026, followed by quarterly installments over 36 months, contingent upon continued employment with Calix.

Sentiment

Score: 7

Explanation: The document indicates positive performance by the executive, leading to the vesting of stock options. This suggests a positive outlook for the company's performance, but it's not a comprehensive assessment of the company's overall financial health.

Positives

• The achievement of performance criteria suggests positive performance by the executive and potentially the company.
• The vesting schedule incentivizes continued employment and contribution to Calix.

Risks

• The value of the stock options is dependent on the future performance of Calix's stock price.
• The vesting is contingent upon continued employment, creating a potential risk if the executive leaves the company.

Future Outlook

The document does not contain specific forward-looking statements about the company's overall financial performance, but the vesting schedule of the stock options suggests an expectation of continued employment and contribution from the executive.

Industry Context

Stock option grants are a common practice in the technology industry to incentivize and retain key executives. The vesting schedules are designed to align the executive's interests with the long-term success of the company.

Comparison to Industry Standards

• Stock options are a standard component of executive compensation packages in the tech industry, used by companies like Cisco, Juniper Networks, and Arista Networks.
• Vesting schedules, typically over 3-4 years with quarterly or annual installments, are also common practice to ensure long-term commitment.
• Performance-based options, where vesting is contingent on achieving specific milestones, are increasingly used to align executive compensation with company performance.

Stakeholder Impact

• Shareholders may view the vesting of stock options as a positive sign, indicating that the executive is meeting performance goals.
• Employees may be motivated by the potential for similar rewards based on their performance.
• The granting of stock options does not have a direct impact on customers, suppliers, or creditors.

Key Dates