Lumentum Holdings Inc

Wajid Ali, formerly the Executive Vice President and Chief Financial Officer, saw total compensation in 2022 of $4,269,379, a figure up from the $4,307,575 in 2020 and down from $7,634,116 in 2019. The variability in Ali's compensation over the years highlights fluctuating stock award allocations, which peaked at $6,201,091 in 2019, coinciding with a substantial bonus of $1,000,000 the same year. This strategy underscores the importance placed by Lumentum on front-loaded compensation packages that incentivize long-term commitments.[2][3][4]


Evident in their compensation strategies is Lumentum’s focus on rewarding strategic executions, as publicized in a recent announcement regarding the appointment of Paul Lundstrom to the Board of Directors, which aims to bolster the company’s governance framework with his expertise, thereby providing a balanced oversight on compensation and operational strategies.[5]

As demonstrated by the company’s current market performance, with the stock priced at $92.92 reflecting a market capitalization of approximately $6.38 billion, stakeholders are keenly observing how these executive compensation packages translate into shareholder returns. Despite a decline owing to an earnings per share (EPS) of -8.31 and a price-to-earnings (PE) ratio of -11.18, Lumentum's stock has shown resilience with a year-high of $96.165.[6]

The upcoming earnings announcement scheduled for February 2025 will serve as a pivotal moment for analysts and investors to scrutinize whether the compensation strategies implemented by Lumentum's leadership are leading to proportional operational and financial performance gains. The industry will certainly watch as Lumentum continues to navigate its ambitious expansion and innovation initiatives under its current leadership paradigm.

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1. U.S. Securities and Exchange Commission, Lumentum Holdings Inc. 2024 Compensation Report, .
2. U.S. Securities and Exchange Commission, Lumentum Holdings Inc. 2022 Compensation Report, .
3. U.S. Securities and Exchange Commission, Lumentum Holdings Inc. 2020 Compensation Report, .
4. U.S. Securities and Exchange Commission, Lumentum Holdings Inc. 2019 Compensation Report, .
5. Business Wire, Lumentum Announces Appointment of New Board Member, .
6. Lumentum Holdings Inc. Stock Performance Data, NASDAQ.