Form 4: Viavi Solutions Executive Luke Scrivanich Reports Stock Transactions

Luke Scrivanich, SVP General Manager OSP at Viavi Solutions, reports acquisition and disposal of common stock and derivative securities, including restricted stock units and market stock units, on August 28, 2024.

Summary

• On August 28, 2024, Luke Scrivanich, SVP General Manager OSP at Viavi Solutions, engaged in transactions involving the company's common stock and derivative securities.
• These transactions included the vesting of restricted stock units (RSUs) and market stock units (MSUs), as well as the acquisition and disposal of shares to cover tax obligations.
• Specifically, 8,897, 10,489, and 13,637 stock units converted into common stock.
• The reporting person disposed of 4,509, 5,316, and 6,912 shares of common stock at a price of $8.49 to satisfy tax withholding requirements.
• Following these transactions, Scrivanich directly owns 64,078 shares of Viavi Solutions common stock.
• Additionally, Scrivanich was granted 59,523 Market Stock Units and 59,523 Restricted Stock Units.
• The number of MSUs that vest will be based on the Company's total stockholder return ('TSR') relative to the performance of the component companies in the NASDAQ Telecommunications Index (the 'NASDAQ Telecom Index') measured over a three-year performance period covering fiscal years 2025 through 2027.

Sentiment

Score: 6

Explanation: The document is neutral in tone, reporting routine stock transactions. The vesting of equity awards is generally a positive sign, but the document itself doesn't provide strong positive or negative signals.

Positives

• The vesting of RSUs and MSUs suggests confidence in the company's future performance.
• The grant of MSUs incentivizes management to improve the company's TSR relative to its peers in the NASDAQ Telecommunications Index.

Risks

• The vesting of MSUs is contingent on the company's TSR performance, which is subject to market fluctuations and industry-specific challenges.
• Failure to achieve the target TSR could result in a lower number of MSUs vesting, potentially impacting executive compensation.

Future Outlook

The vesting of Market Stock Units is dependent on the company's TSR performance relative to the NASDAQ Telecommunications Index over the next three fiscal years (2025-2027).

Industry Context

Stock-based compensation is a common practice in the technology industry to align management's interests with those of shareholders. The use of TSR as a performance metric is also prevalent, as it directly reflects the company's value creation for investors.

Comparison to Industry Standards

• Many technology companies use a combination of time-based and performance-based equity awards.
• Companies like Cisco, Juniper Networks, and Ciena also utilize TSR as a key performance indicator for executive compensation.
• The vesting schedule and performance targets for Viavi's MSUs appear to be in line with industry standards.

Stakeholder Impact

• The vesting of MSUs could potentially increase shareholder value if the company's TSR outperforms its peers.
• The stock transactions reported in the Form 4 filing may have a minor impact on the company's stock price.

Next Steps

• Monitor Viavi's TSR performance relative to the NASDAQ Telecommunications Index over the next three fiscal years.
• Track future Form 4 filings by company insiders for any significant changes in ownership.

Key Dates