Form 4: Commvault CFO Jennifer DiRico Reports Stock Grants and Holdings

Jennifer DiRico, CFO of Commvault Systems Inc., reports the acquisition of common stock through restricted stock units and performance share units.

Summary

• On May 15 and 16, 2025, Jennifer DiRico, the CFO of Commvault Systems Inc., reported transactions involving the company's common stock.
• These transactions include the acquisition of 10,992 shares, 8,244 shares, and 8,244 shares of common stock through restricted stock units (RSUs) and performance share units (PSUs).
• An additional 4,144 shares were issued related to the company's total shareholder return for fiscal year 2025.
• The RSUs vest over three years, with one-third vesting on the first anniversary and the remainder in equal quarterly installments.
• One third of the PSUs will vest on each of the first, second, and third anniversaries of the grant date if the company's total shareholder return satisfies specified benchmarks relative to the Russell 3000 index.
• Other PSUs vest over three years based on the company's achievement of certain financial performance metrics.
• Following these transactions, DiRico beneficially owns 71,203 shares of Commvault common stock.

Sentiment

Score: 7

Explanation: The document reflects standard executive compensation practices, indicating a stable and incentivized management team. The vesting conditions tied to performance metrics are a positive sign.

Positives

• The grants of RSUs and PSUs align the CFO's interests with those of the shareholders, incentivizing performance and long-term value creation.
• The vesting schedules for the RSUs and PSUs encourage continued service and achievement of performance goals.

Future Outlook

The vesting of the RSUs and PSUs is contingent upon continued service and, in the case of PSUs, the achievement of specific performance metrics and total shareholder return targets.

Industry Context

Stock grants are a common practice in the technology industry to attract, retain, and incentivize key executives. The use of performance-based equity awards aligns executive compensation with company performance and shareholder value.

Comparison to Industry Standards

• Many technology companies, such as Salesforce (CRM) and Microsoft (MSFT), utilize a mix of restricted stock units and performance-based equity awards in their executive compensation packages.
• Vesting schedules of three years are typical for RSUs, while performance metrics for PSUs often include revenue growth, profitability, and total shareholder return, similar to the metrics used by Commvault.
• The specific benchmarks for total shareholder return relative to the Russell 3000 index are a common way to measure performance against a broad market index.

Stakeholder Impact

• Shareholders may view the stock grants positively as they align management's interests with the company's performance.
• Employees may see the grants as a sign of the company's commitment to its leadership team.

Key Dates

Keywords

Commvault, Jennifer DiRico, CFO, stock grants, restricted stock units, performance share units, beneficial ownership, Form 4, CVLT