Company: QLYS
Filing Date: 2025-04-11
Form Type: PRE 14A
Source: 0001140361-25-013472
Chunk: 57

Company: QUALYS, INC.
Filing Date: 2025-04-11
Form: PRE 14A
Chunk 57
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, by dividing the intended value by $125.10 per share, which was the average closing price of our common stock for the 30-trading-day-period ending seven days before the grant date. |

| (2) | These PRSU awards are divided into three tranches with one-year performance periods covering the calendar years 2025, 2026, and 2027, respectively. One-third of the target number of PRSUs is allocated to each tranche. Each tranche will be subject to performance goals to be set shortly after the beginning of applicable performance year. |

| Understanding the Differences: Reported PRSU Values in the 2024 Summary Compensation Table vs. Target PRSU Values Approved by the Compensation and Talent Committee                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
 As discussed above, the PRSUs awarded to our named executive officers in October 2021, 2022, 2023 and 2024 vest annually over a three-year period based on the attainment of performance goals that are set and measured in each year of the three-year period. This results in differences between the reported PRSU award grant date fair value (“GDFV”) in the Summary Compensation Table and the target values of the PRSUs approved by the Compensation and Talent Committee.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
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| The differences between the GDFVs and the target values are due to the SEC requirement that PRSU award values disclosed in the Summary Compensation Table reflect the GDFV of the PRSU as determined under FASB ASC Topic 718, which stipulates that grant date is established when the underlying terms of the award are fixed. Because the performance goals for each tranche of the PRSU awards are set in different fiscal years, the tranches are reported separately in the proxy statements discussing those fiscal years. In addition, the total GDFV of the three tranches for FASB ASC Topic 718 purposes (as reported in the Summary Compensation Table in those proxy statements) may differ from the target value that the Compensation and Talent Committee originally approved. In years when the stock price has declined, the GDFV reported for that tranche in the Summary Compensation Table will be lower than the tranche’s target value. In years when the stock price has increased, the GDFV reported for that tranche in the Summary Compensation Table will exceed the tranche’s target value. |
| To assist investors in understanding the differences