Company: QLYS
Filing Date: 2025-04-23
Form Type: DEF 14A
Source: 0001140361-25-015182
Chunk: 64

Company: QUALYS, INC.
Filing Date: 2025-04-23
Form: DEF 14A
Chunk 64
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 280G or 4999 or for any additional tax that he or she might owe as a result of the application of Section 409A. We have not agreed and are not otherwise obligated to provide any named executive officer with such a “gross-up” or other reimbursement. Accounting Considerations Accounting standards on stock compensation requires us to measure the compensation expense for all share-based payment awards made to employees (including our named executive officers) and directors based on the grant date “fair value” of these awards. This calculation is performed for accounting purposes and reported in the tables below, even though our named executive officers and directors may never realize any value from their equity awards. The accounting standards also require us to recognize the compensation cost of share-based payment awards in our income statements over the period that the named executive officer or director is required to provide services to us in exchange for the vesting of the equity award. Risk Considerations Our Compensation and Talent Committee assesses risks created by the incentives inherent in our compensation policies. We have designed our executive compensation program so that our executive officers (including our named executive officers) focus on both short-term and long-term financial and operational performance. In addition, in 2024, our Compensation and Talent Committee had engaged Compensia to independently review our executive compensation program. Our Compensation and Talent Committee conducts an annual review of our executive compensation program to ensure that it continues to reward our executive officers (including our named executive officers) for creating short-term and long-term stockholder value without encouraging our executive officers to take excessive risks. Based on the results of these reviews, we do not believe that our executive compensation program creates risks that are reasonably likely to have a material adverse effect on us. The risk mitigation features include:

| • | Balance among short- and long-term incentives, cash and equity, fixed and variable pay |

| • | Multiple performance metrics as targets |

| • | Caps on pay |

| • | Clawback policies |

| • | Stock ownership guidelines |

| 55 |

| • | Holding period requirement for performance-based equity awards |

| • | Anti-hedging policies |

| • | Double-trigger change in control arrangements |

Compensation and Talent Committee Report The following Compensation and Talent Committee Report shall not be deemed to be “soliciting material” and should not be deemed “filed” and shall not be deemed to be incorporated by reference in future filings with the SEC, except to the extent that the Company specifically incorporates it by reference into a document filed under the Securities Act or the Exchange Act.