Company: QLYS
Filing Date: 2025-04-23
Form Type: DEF 14A
Source: 0001140361-25-015182
Chunk: 43

Company: QUALYS, INC.
Filing Date: 2025-04-23
Form: DEF 14A
Chunk 43
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 revenues; and |

| • | Earnings Per Share (“EPS”) increased by 15% to $4.65, as compared to $4.03 in 2023. Non-GAAP EPS* increased by 16% to $6.13, as compared to $5.27 in 2023. |

| 36 |

* Appendix Bcontains a reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures. Executive Compensation Highlights Consistent with our “pay-for-performance” philosophy, our non-equity incentive plan pays cash compensation based on achievement of bookings, revenue growth and non-GAAP EPS. The Compensation and Talent Committee selected these three metrics, which measure sales growth and profitability, as the corporate performance metrics that best support our annual operating plan and represent drivers of stockholder value creation. In 2024, the non-equity incentive plan paid out at approximately 81% of target. As for equity incentive plan, we grant annually a mix of time-based RSUs and PRSUs, whereby RSUs are set to vest over four years subject to continued service and PRSUs are set to vest annually over three years subject to achievement of respective year’s annual performance targets: revenue growth and adjusted EBITDA margin. The Compensation and Talent Committee selected these metrics as the best drivers of our long-term value creation. In 2024, PRSUs earned based on 2024 calendar year performance was approximately 103% of target. Following the timing change to our equity award goal setting process described further below, each of the three PRSU tranches using a 2024 performance period (in connection with equity awards we approved in 2021, 2022, and 2023) were considered granted in 2024 and are included in this year’s Summary Compensation Table. Historically, our board of directors or the Compensation and Talent Committee approved our annual performance goals that would be used for the PRSU component of the equity award for the next year, in the fourth quarter of the preceding year. During 2023, our board of directors continued this practice of approving the target value of PRSUs for 2024 in October 2023, but decided to move the approval of the performance goals to be used for the PRSU component to February 2024. This change was made so that our board of directors and the Compensation and Talent Committee has the benefit of a complete view of year end results and a more refined forecast when approving our performance goals, which improves their ability