Company: CALX
Filing Date: 2025-03-27
Form Type: DEF 14A
Source: 0001406666-25-000011
Chunk: 54

Company: CALIX, INC
Filing Date: 2025-03-27
Form: DEF 14A
Chunk 54
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 an increase in the shares authorized for issuance under the Nonqualified ESPP in May 2023 which increased the shares authorized for issuance under the Nonqualified ESPP from 6,300,000 to 7,500,000.

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Since its inception in May 2017, a total of 5,723,350 shares have been issued under the Nonqualified ESPP, inclusive of forfeited shares.

#### Background on Share and Amendment Request
In its determination to approve the 2,923,400 shares reserved for issuance pursuant to the matching component of the Stock Purchase and Matching Plan, our Board and Talent and Compensation Committee reviewed an analysis prepared by Compensia, its compensation consultant, which included an analysis of our historical share usage under the Nonqualified ESPP, certain dilution metrics and the costs of each of the purchase component and matching component of the Stock Purchase and Matching Plan. Specifically, our Board and Talent and Compensation Committee considered the following:

• During the Nonqualified ESPP's three-month Offering Period ended on November 7, 2024, we issued a total of 341,748 shares out of a maximum of 350,000 shares and saw the number of participants remain constant over the prior year. Further, participating employees for the Offering Period ended November 7, 2024 elected to contribute an average of 12.5% of their eligible earnings to purchase shares under the Nonqualified ESPP. As such, our Board and Talent and Compensation Committee believe that the Nonqualified ESPP acts, and the Stock Purchase and Matching Plan will act, as an important incentive to both newly hired and existing employees to invest in our common stock and aligning their interests with the interests of our stockholders.

• Based on the Company’s hiring plan, we expect continued growth in our employee base. In 2024, the Company increased headcount by approximately 2% to 1,820 employees as of December 31, 2024.

• Our Board and Talent and Compensation Committee considered the dilutive effect of the share reserved for issuance under both the purchase component and the matching component of the Stock Purchase and Matching Plan and sought to balance such dilutive effect with the benefits of providing sufficient shares to promote employee participation.

• No more than an aggregate of 175,000 shares may be issued under the matching component on any date shares are purchased in a three-month Offering Period.

In light of the factors described above, and our Board’s and our Talent and Compensation Committee’s assessment