Company: CALX
Filing Date: 2025-03-27
Form Type: DEF 14A
Source: 0001406666-25-000011
Chunk: 39

Company: CALIX, INC
Filing Date: 2025-03-27
Form: DEF 14A
Chunk 39
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 equity-based awards granted to a non-employee director during any calendar year shall not exceed $750,000 (to be increased to $1,500,000 under Proposal 2).

• No loans. Executive officers and directors are not permitted to make payment with respect to any awards granted under the 2019 Plan with loans from the Company.

#### Background on Share Request
In its determination to approve the share increase to the 2019 Plan, our Talent and Compensation Committee reviewed an analysis prepared by Compensia, Inc. (“Compensia”), its current compensation consultant, which included an analysis of our historical share usage, certain burn rate metrics and the costs of the 2019 Plan. Specifically, our Talent and Compensation Committee considered the following:

• In determining the reasonableness of the 2019 Plan share reserve, our Talent and Compensation Committee considered our historic burn rate. The following historical grant information results in an average annual burn rate for the last three years of 4.03% of the total of then-outstanding shares, or Basic Weighted Average Common Shares Outstanding, as shown in the following table, counting both options and full-value awards on a one-for-one basis. Our Talent and Compensation Committee considered our historic burn rate levels and the impact of utilizing regular annual equity compensation grants in determining how long the amended share authorization could potentially last. We expect the share authorization under the 2019 Plan to provide us with enough shares for awards for two to three years, with such timing dependent on a variety of factors, including the price of our shares and hiring activity during the next few years, forfeitures of outstanding awards, and noting that future circumstances may require us to change our current equity grant practices. We cannot predict our future equity grant practices, the future price of our shares or future hiring activity with any degree of certainty at this time, and the share reserve under the 2019 Plan could last for a shorter or longer time.

• The Talent and Compensation Committee also considered the Company’s total overhang when compared to industry practice. Considering that the Company grants stock options rather than RSUs, the total overhang is inherently higher compared to other companies in the industry that grant only RSUs. Whereas RSUs are removed from issued overhang when they vest, vested stock options remain in the issued overhang until they are exercised. In our situation, where many employees have not exercised their stock options, this leads to an elevated overhang due to counting the vested unexercised options. If our overhang, as of March