Form 4: Lumentum Holdings Inc. Executive Matthew Joseph Sepe Reports Acquisition of Restricted Stock Units

Chief Accounting Officer Matthew Joseph Sepe reports the acquisition of restricted stock units in Lumentum Holdings Inc.

Summary

• On August 21, 2024, Matthew Joseph Sepe, Chief Accounting Officer of Lumentum Holdings Inc., acquired 12,804 restricted stock units (RSUs).
• These RSUs represent a contingent right to receive one share of Lumentum Holdings Inc.'s common stock per unit following vesting.
• Vesting occurs in installments: 1/3 vests one year from the grant date, and the remaining shares vest in eight equal quarterly installments thereafter on the 15th of November, February, May, and August.
• Vesting is contingent upon the Reporting Person's continued employment through each vesting date, or as provided under the Issuer's 2015 Equity Incentive Plan.
• Following the reported transaction, Sepe beneficially owns 42,114 shares of Lumentum Holdings Inc. common stock as of August 30, 2024.

Sentiment

Score: 6

Explanation: The sentiment is neutral. It's a routine filing indicating standard executive compensation practices. The acquisition of RSUs is generally viewed positively, but it's not a major event.

Positives

• The acquisition of RSUs by a company executive can be seen as a positive sign, indicating confidence in the company's future performance.

Future Outlook

The vesting schedule of the RSUs extends into the future, contingent on continued employment, aligning the executive's interests with the company's long-term performance.

Industry Context

Executive compensation through stock and equity grants is a common practice in publicly traded companies to incentivize performance and align management's interests with those of shareholders.

Comparison to Industry Standards

• Stock-based compensation is a standard practice among publicly traded companies, particularly in the technology sector, to attract and retain talent.
• Companies like Cisco, Juniper Networks, and Ciena also utilize RSUs and stock options as part of their executive compensation packages.
• The vesting schedules and amounts of equity granted vary based on company size, performance, and individual executive roles.

Stakeholder Impact

• The granting of RSUs aligns the executive's interests with those of the shareholders, as the value of the RSUs is tied to the company's stock performance.

Key Dates