Company: CALX
Filing Date: 2025-03-27
Form Type: DEF 14A
Source: 0001406666-25-000011
Chunk: 74

Company: CALIX, INC
Filing Date: 2025-03-27
Form: DEF 14A
Chunk 74
---
               |     | •Recognizing the PSOs are fully at risk, the service-based stock options are intended to provide alignment with stockholders at time of grant.                                                                                                  
 •This type of award is also critical in helping to recruit top talent as we are often competing with companies that are delivering long-term incentives with less risk (e.g., service-based full value shares (RSUs), which we do not provide). |

We provide grants of stock options to our NEOs under our 2019 Plan on an annual basis as determined by our Talent and Compensation Committee. Our stock option grants have either performance-based and/or service-based vesting as described above, with all awards generally having a four year vesting schedule. Our Talent and Compensation Committee also reviews our annual equity usage and related information, including reference data for peer companies and overall industry practices annually.

Our Talent and Compensation Committee approves equity grants at regularly scheduled Committee meetings. Our annual PSO grant is generally made in February.

Initial awards at the time of hire or promotion and retention awards generally vest solely based on the continued service of the NEO. The size and terms of the initial equity grant made to each new NEO is primarily based on competitive conditions applicable to the NEO’s specific position and, in the case of a new hire executive leaving his or her prior company, the value of unvested equity. In addition, we consider the number of shares of our common stock underlying stock options granted to other executives in comparable positions within the Company.

2024 Stock Option Awards

On February 8, 2024, the Talent and Compensation Committee approved an annual grant consisting of only performance-based stock options ("PSOs") for our NEOs based on specific financial targets for 2024. No service-based stock options were granted this year to provide a strong performance incentive for our NEOs. The annual grant was divided into two parts:

• Plan #1 (75% of target value) with the actual number of shares earned contingent upon achievement of annual corporate financial targets for non-GAAP operating income and bookings for 2024 (collectively, the “2024 Plan #1 Performance Metrics”), each weighted 50%; and

• Plan #2 (25% of target value) with the actual number of shares earned contingent upon achievement of the annual bookings target (the “2024 Plan #2 Performance Metric”).

<div align='center'>53</div>

Under Plan #1, if non-GAAP operating income and bookings were below 80% of target, no options would have been earned,