Company: QLYS
Filing Date: 2025-04-23
Form Type: DEF 14A
Source: 0001140361-25-015182
Chunk: 44

Company: QUALYS, INC.
Filing Date: 2025-04-23
Form: DEF 14A
Chunk 44
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 to set appropriately calibrated goals.

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As a result of this change, certain tranches of PRSUs will be considered granted in the first quarter of the corresponding performance year, while our annual RSU awards will continue to be considered granted in the year of approval (generally, October of each year). The result of this change in 2024 is that there were three tranches of PRSUs considered granted to NEOs in 2024 for purposes of ASC Topic 718. This is illustrated in the chart below, where each row represents the annual grant approved by our Compensation and Talent Committee, and each column represents the year the grant is reported in the Summary Compensation Table. As a result, the Year 1, Year 2 and Year 3 tranches for PRSU awards for which the target number of PRSUs were approved in October 2024, 2023 and 2022, respectively, are considered granted in January 2025 for purposes of ASC Topic 718 and will be reported in the Summary Compensation Table in next year’s proxy statement. To ensure transparency and clarity to our shareholders, we are providing a supplemental Compensation Table in the CD&A (see page 50), as well as providing the detail in the footnotes of the Summary Compensation Table (see the footnotes of page 56). This change is discussed in more detail in the section entitled “ Equity Compensation”of the Executive Compensation Program Components, and in the section entitled “ 2024 Summary Compensation Table”.

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Philosophy and Objectives Our compensation philosophy is to provide programs that attract and retain the best available personnel for positions of substantial responsibility, provide incentives for such persons to perform to the best of their abilities, and promote the success of our business. Good Pay and Governance Practices We maintain the following good executive pay and corporate governance policies and practices:

| What we do✔            |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| ✔                      |     | We balance near- and long-term strategic objectives by providing a mix of cash and equity incentives                                                                                                                                                                                                                                                                                                                                                                             |
| ✔                      |     | We cap non-equity incentive awards at 125% of target for all of our named executive officers, subject to achievement of challenging performance metrics                                                                                                                                                                                                                                                                                                                          |
| ✔                      |     | A substantial portion of our named executive officers’ equity awards is performance-based equity with vesting and release of the PRSU awards capped at 100% of target performance for each of the first two years of the performance period. Cumulative