LITE Form 4: CFO Ali Wajid Gains RSUs, PSUs Convert; Shares Withheld for Taxes
Rhea-AI Filing Summary
Ali Wajid, EVP & Chief Financial Officer of Lumentum Holdings, reported multiple equity transactions on Form 4. On 08/19/2025 he was granted 22,760 restricted stock units (RSUs) that vest over time under the 2015 Equity Incentive Plan. On 08/21/2025 he acquired 9,152 shares upon satisfaction of performance stock unit (PSU) conditions related to a 2024 grant. Also on 08/21/2025 the issuer withheld 10,067 shares to satisfy income tax withholding in connection with RSU/PSU vesting. After these events he beneficially owned 67,315 shares following the withholding-adjusted transaction totals shown on the form.
Positive
- Substantial RSU grant of 22,760 units indicates continued executive retention incentives
- PSU conversion of 9,152 shares shows performance conditions were met and compensated accordingly
- Beneficial ownership increased on a gross basis to 77,382 shares before withholding
Negative
- 10,067 shares withheld to satisfy tax obligations reduced net delivered shares to 67,315
- Disposition reported at $117.43 (withholding) reduces immediately realizable shares for the reporting person
Insights
TL;DR: Routine executive compensation vesting and tax withholding increased vested ownership while reducing net delivered shares.
The filings reflect standard equity compensation mechanics: time-based RSUs granted (22,760 RSUs) with a staggered vesting schedule and performance-based PSUs converted to 9,152 shares upon the Compensation Committee's certification. The 10,067-share disposition at $117.43 is explicitly a withholding to meet tax obligations, not a market sale. Net effect: reported beneficial ownership rises from the initial totals to 77,382 before withholding and 67,315 after withholding. This is a non-operational, non-liquidity-driven insider event and is generally neutral for valuation but signals continued executive alignment with equity incentives.
TL;DR: Governance practices appear standard: equity grants follow plan terms and tax withholding was executed as expected.
The document shows adherence to the Issuer's 2015 Equity Incentive Plan and committee-determined performance outcomes for PSUs. Vesting terms (one-year cliff then quarterly installments) are disclosed for RSUs, providing transparency on retention incentives. The withheld shares for taxes are documented, consistent with common practice to satisfy withholding without open-market sales. No unusual related-party or delegation flags are present in the filing.
Insider Trade Summary
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Grant/Award | Common Stock | 9,152 | $0.00 | -- |
| Tax Withholding | Common Stock | 10,067 | $117.43 | $1.18M |
| Grant/Award | Common Stock | 22,760 | $0.00 | -- |
Footnotes (1)
- These securities are restricted stock units ("RSUs"). Each RSU represents a contingent right to receive, following vesting, one share of the Issuer's Common Stock. 1/3 of the shares shall vest one year from the grant date, and the remaining shares shall vest in eight (8) equal quarterly installments thereafter on the 15th of November, February, May and August, subject to the Reporting Person continuing to be an employee through each such date, or as provided under the Issuer's 2015 Equity Incentive Plan. Represents the acquisition of shares upon the determination of the Compensation Committee of the Board of Directors of the Issuer that certain performance conditions were met with respect to certain performance stock units ("PSUs") granted to the Reporting Person on August 21, 2024. Represents shares that have been withheld by the Issuer to satisfy income tax withholding and remittance obligations in connection with the vesting of RSUs and PSUs.
