Julie Eng
COHERENTAbout Julie Eng
Julie S. Eng, age 57, is Chief Technology Officer of Coherent, appointed in October 2022; she joined Coherent in 2019 via the Finisar acquisition after 25+ years in optoelectronics with roles at AT&T, Lucent, Agere, and senior leadership at Finisar (EVP/GM 3D Sensing; EVP Datacom Engineering). She holds a Ph.D. and M.S. in Electrical Engineering from Stanford, an M.S. and B.A. from Bryn Mawr College, and a B.S. with honors from Caltech . Over the three-year period ending FY2025, Coherent’s TSR was 43.73% and FY2023–FY2025 PSUs paid at 108% of target; FY2024 revenue was $4,708 million (down 9% YoY) and Adjusted EBITDA was $1,001.2 million, framing the pay-for-performance context for NEO incentives .
Past Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| Coherent Corp. | SVP & GM, Optoelectronic Devices and Modules BU | 2019–2022 | Led Optoelectronic Devices and Modules BU prior to CTO appointment |
| Finisar (acquired by Coherent) | EVP & GM, 3D Sensing | Not disclosed | Senior leadership of 3D sensing initiatives |
| Finisar (acquired by Coherent) | EVP, Datacom Engineering | Not disclosed | Led Datacom engineering |
| AT&T; Lucent; Agere | Various roles | Not disclosed | Optoelectronics and optical communications industry roles |
External Roles
- No public company board roles disclosed for Julie Eng .
Fixed Compensation
| Metric | FY2025 |
|---|---|
| Base Salary ($) | 497,831 |
| Target Bonus – Non-Equity Plan (cash) ($) | Two plan targets disclosed: $80,246 and $672,064 (see Performance Compensation for plan design) |
| Target Bonus as % of Base (reference base per severance schedule = $501,540) | $80,246 = 16.0%; $672,064 = 134.0% (derivation from disclosed targets and base used in severance) |
| Actual Bonus Paid ($) | 701,805 (FY2025 Non-Equity Incentive Plan Compensation) |
| All Other Compensation ($) | 22,139 |
Performance Compensation
Annual Cash Incentives (Design and Results Context)
- Program structure: Two annual cash incentive programs for executive officers: GRIP (primary, metrics: Revenue and Adjusted EBITDA, equally weighted) and BIP (broad-based, metric: Adjusted EBITDA; for NEOs typically 8% of base in FY2024) .
- FY2024 achievements (program context): GRIP averaged 30% of target (1H: 60%, 2H: 0%); BIP paid 82.1% for the year, evidencing goal rigor and pay-for-performance alignment .
- FY2025 plan-based award targets for Eng (cash): two non-equity incentive plan targets of $80,246 and $672,064 are disclosed; the proxy does not label the programs on the face of the table, but these represent the FY2025 cash incentive target opportunities granted to Eng .
- FY2025 actual cash payout (aggregate): $701,805 .
| Program | Metric(s) | Weighting | FY2025 Target ($) | FY2025 Actual Payout ($) | Notes |
|---|---|---|---|---|---|
| Annual cash incentives (aggregate) | Revenue; Adjusted EBITDA (GRIP); Adjusted EBITDA (BIP) | GRIP: Rev 50%, Adj. EBITDA 50%; BIP: Adj. EBITDA | 80,246; 672,064 | 701,805 | FY2024 design/rationale and outcomes disclosed; FY2025 metrics follow the established program framework |
Long-Term Equity Incentives (Grants and Performance)
- LTI mix for NEOs in FY2025: 60% PSUs / 40% RSUs; PSUs have a 3-year performance period (FY2025–FY2027) with a single rTSR metric vs S&P Composite 1500 Electronic Equipment, Instruments & Components; payout: 0% at <25th percentile, 50% at 25th, 100% at 50th, 200% at ≥75th; capped at 100% if absolute TSR is negative; PSUs cliff-vest at end of performance period; RSUs vest ratably over three years .
- Eng’s FY2025 Grants:
- PSUs granted 08/29/2024: Threshold 9,651; Target 19,301; Maximum 38,602; Grant-date fair value $2,222,124 .
- RSUs granted 08/29/2024: 12,867; $1,000,023; RSUs granted 02/28/2025: 13,300; $1,000,027 (3-year ratable vesting) .
- FY2023–FY2025 PSU outcome (earned in FY2025): Coherent TSR 43.73% (53rd percentile) → PSUs earned at 108% of target; Eng earned 4,371 PSUs vs 4,048 target .
- FY2025 vesting realized (value on vest): Eng had 12,485 stock award shares vest with $963,374 value realized (before withholding) .
| Award Type | Grant Date | Metric | Threshold | Target | Maximum | Vesting | Grant-Date Fair Value ($) |
|---|---|---|---|---|---|---|---|
| PSU (FY2025–FY2027) | 08/29/2024 | rTSR vs S&P Comp 1500 EEI&C | 9,651 | 19,301 | 38,602 | Cliff at FY2027; cap at 100% if absolute TSR negative | 2,222,124 |
| RSU | 08/29/2024 | Time-based | — | 12,867 | — | 3-year ratable (annual) | 1,000,023 |
| RSU | 02/28/2025 | Time-based | — | 13,300 | — | 3-year ratable (annual) | 1,000,027 |
| PSU (FY2023–FY2025 Result) | — | rTSR (3-yr) | — | 4,048 target | — | Earned at 108%; 4,371 earned | — |
Equity Ownership & Alignment
Ownership Snapshot (as of FY2025 year-end)
| Item | Value |
|---|---|
| Beneficial ownership (Aug 31, 2025) | 12,479 shares; less than 1% of outstanding; none pledged |
| Unvested RSUs (Jun 30, 2025) | 43,430 units; $3,874,390 market value (based on $89.21) |
| Unearned PSUs outstanding (Jun 30, 2025) | 31,260 units; $2,788,705 market/payout value at target (based on $89.21) |
| Options | None outstanding for Eng |
Scheduled Vesting (as of Jun 30, 2025)
| Type | Vesting Date | Shares |
|---|---|---|
| Time-based RSU | Aug 2025 | 12,309 |
| Time-based RSU | Feb 2026 | 4,433 |
| Time-based RSU | Aug 2026 | 9,161 |
| Time-based RSU | Feb 2027 | 4,433 |
| Time-based RSU | Jun 2027 | 4,289 |
| PSU (FY2023 grant) | Jun 2025 | 4,048 |
| PSU (FY2024 grant) | Jun 2026 | 11,959 (target) |
| PSU (FY2024 grant) | Jun 2027 | 19,301 (target) |
- Executive stock ownership guidelines: CEO 3x base salary; other executive officers 1x base salary; newly hired/promoted execs have 3 years to comply; all current NEOs are in compliance or within the phase-in period .
- Anti-hedging and anti-pledging: Executives and directors are prohibited from hedging or pledging Company stock, including holding in a margin account; insider trading policy requires pre-clearance and restricts trades during blackout windows .
Employment Terms
- Severance economics for Julie Eng (as of Jun 30, 2025):
- Termination without cause/for good reason (outside CIC period): Cash severance $501,540; healthcare coverage payments $32,037; total $562,037 .
- Termination without cause/for good reason (during CIC period): Cash severance $1,504,620; healthcare coverage payments $48,055; pro-rata bonus $701,805; total $2,749,563 .
- Equity treatment upon separation:
- Not during CIC period: Unvested equity vesting within 12 months post-termination fully vests; vesting tranches begun but not completed within first 12 months vest pro-rata; PSUs pay based on actual performance for full period, pro-rated (12 months inclusion) .
- During CIC period (double-trigger): All unvested equity fully vests; PSUs vest at the greater of target or actual performance measured through date immediately before the CIC; options remain exercisable per award agreements .
- Release and post-employment covenants (confidentiality, inventions assignment, non-compete, non-solicit) required to receive severance/vesting .
- Clawback: NYSE/Rule 10D-1 compliant Compensation Recovery Policy effective October 2, 2023; prior policy applies to pre-10/2/2023 awards; covers recovery of erroneously awarded incentive compensation after financial restatements .
Compensation Structure Analysis
- LTI emphasis and rTSR metric alignment: FY2025 PSU awards are 100% rTSR with a three-year cliff, capped at 100% if absolute TSR is negative, aligning realized pay with shareholder outcomes and peer-relative performance .
- Cash incentives tied to operational performance: Revenue and Adjusted EBITDA metrics govern GRIP; FY2024 outcomes (30% GRIP; 82.1% BIP) demonstrate goal rigor and variable pay sensitivity to results .
- Ownership alignment and risk controls: Stock ownership guidelines (1x base for non-CEO execs), anti-hedging/pledging, and clawback policy reinforce investor alignment and mitigate governance risk .
- Governance context: 2023 Say-on-Pay approval was ~95.7%, indicating strong shareholder support for the compensation framework; peer group reviewed annually to benchmark competitiveness .
Investment Implications
- Incentive alignment: Eng’s pay mix (PSU/RSU-heavy with 3-year rTSR for PSUs) ties realized equity to relative TSR and imposes a negative TSR cap, reducing windfall risk and enhancing alignment with shareholder returns .
- Vesting calendar and potential supply: Significant scheduled RSU tranches (Aug 2025, Aug 2026) and PSU cliffs (Jun 2026, Jun 2027, subject to performance) could create event-driven liquidity around vest dates; FY2025 vesting realized 12,485 shares ($963,374) illustrates ongoing equity conversion cadence .
- Retention and CIC dynamics: Double-trigger CIC equity acceleration and ~3x base cash severance in a CIC for Eng, plus pro-rata bonus, provide retention through a transaction while balancing shareholder protections via clawback and double-trigger standards .
- Performance sensitivity: FY2024’s 30% GRIP payout vs 82.1% BIP and 108% PSU rTSR payout for FY2023–FY2025 highlight variable pay’s responsiveness to both operating and market-relative performance, a factor in forecasting future realized compensation and insider selling pressure tied to vested awards .