Wajid Ali
Lumentum HoldingsAbout Wajid Ali
Wajid Ali, age 52, is Executive Vice President and Chief Financial Officer of Lumentum Holdings (LITE) and has served since February 2019, leading all aspects of the finance organization . In FY2025, Lumentum delivered 21% revenue growth to $1.645B, adjusted gross margin expansion of 450 bps, adjusted operating margin +1,030 bps, and an 86% one‑year TSR, which underpin the company performance context for Ali’s pay-for-performance program design and outcomes .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Synaptics, Inc. | SVP & CFO | May 2015 – Feb 2019 | Led finance during transition toward IoT; public-company CFO experience |
| Teledyne Technologies Inc. | VP & Controller | Not disclosed | Oversaw corporate controllership for instrumentation/software portfolio |
| DALSA Corp. (acquired by Teledyne in 2011) | CFO | Pre-2011 | Navigated finance through acquisition; semiconductor industry exposure |
| Advanced Micro Devices (AMD) | Senior finance roles | Not disclosed | Managed finance for large business groups; semis experience |
| ATI Technologies Inc. | Senior finance roles | Not disclosed | Managed finance for large business groups; graphics semis exposure |
External Roles
| Organization | Role | Years |
|---|---|---|
| TTM Technologies, Inc. | Director | Since May 2024 |
Fixed Compensation
Multi-year compensation for Ali (grant-date values per FASB ASC 718):
| Metric | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
| Salary ($) | 549,077 | 515,904 | 556,000 |
| AIP Target (% of Base) | Not disclosed | 90% | 90% |
| Non-Equity Incentive Plan Cash ($) | 159,427 | 65,047 | 161,079 |
| Stock Awards ($) | 4,385,372 | 3,837,416 | 4,126,113 |
| All Other Compensation ($) | 3,666 | 4,122 | 3,622 |
| Total ($) | 5,097,242 | 4,422,489 | 4,846,814 |
Notes:
- FY2025 “All Other Compensation” comprises imputed group term life insurance ($2,622) and HSA employer matching ($1,000) .
- AIP target amount for FY2025 equals $500,400 (90% of $556,000) .
Performance Compensation
FY2025 Annual Incentive Plan (AIP)
| Metric | Weight | Target | Actual | Payout | Vesting |
|---|---|---|---|---|---|
| Adjusted Organic Operating Income | 60% | Committee-set | $160.1M | 120.00% of component | Up to 100% of total AIP paid in PSUs; >100% paid in cash |
| Consolidated Organic Revenue | 40% | Committee-set | $1,645M | 61.51% of component | Same as above |
| Negative Discretion (incl. Quality Modifier) | — | — | — | (27.2)% applied | N/A |
| Total AIP Attainment | 100% | — | — | 132.19% of target | Up to 100% in PSUs; remainder cash |
- Ali’s FY2025 AIP cash paid was $161,079, reflecting payout above 100% in cash with the first 100% delivered via PSUs .
Long-Term Incentive Program (LTIP) – PSUs and RSUs
| Award Type | FY2025 Structure | Weighting | Measurement & Vesting |
|---|---|---|---|
| PSUs (3-year) | Financial + rTSR (Strategic Progress Objectives eliminated in FY2025) | 67% Total Revenue; 33% rTSR | Performance measured over FY2025–FY2027; vests after performance period or 3rd anniversary |
| RSUs (time-based) | Service-vesting | — | Typically 1/3 at 1-year anniversary; remainder quarterly over next 2 years (grant-specific) |
Historical PSU outcomes:
- FY2023–FY2025 LTIP cycle paid at 24% of target, reflecting prior industry trough despite FY2025 rebound .
Equity Ownership & Alignment
Beneficial Ownership
| Holder | Shares Beneficially Owned | % of Outstanding |
|---|---|---|
| Wajid Ali | 9,755 | <1% (*) |
(*) Company notes “indicates ownership of less than 1%” .
FY2025 Vesting Activity
| Executive | Shares Acquired on Vesting (#) | Value Realized ($) |
|---|---|---|
| Wajid Ali | 35,365 | 2,289,692 |
Outstanding Equity Awards at FY2025 Year-End (selected grants)
| Grant Date | Award Type | Shares/Units | Footnote/Terms |
|---|---|---|---|
| 08/24/2022 | PSUs (FY2023–FY2025) | 21,393 | Vests based on 3-year performance; amounts shown at target |
| 08/23/2023 | PSUs (FY2024–FY2026) | 32,797 | Revenue + Strategic Objectives (later adjusted); at target |
| 08/21/2024 | PSUs (FY2025 AIP portion) | 9,152 | Vests based on FY2025 AIP metrics; at target |
| 08/21/2024 | PSUs (FY2025–FY2027) | 32,009 | 67% Revenue / 33% rTSR; at target |
| 08/21/2024 | RSUs (time-based) | 32,010 | Time-based vesting schedule |
Ownership alignment policies:
- Stock ownership guidelines: 2x base salary for executive officers; all continuing directors and executive officers were in compliance or on track as of FY2025 year-end .
- Hedging/pledging prohibited under insider trading policy; no hedging or pledging allowed .
- Clawback policy complies with SEC/listing standards; recovery of excess incentive-based compensation upon restatement .
Section 16 compliance:
- Administrative error caused late Form 4 filings for Aug 21, 2024 grants (filed Aug 30, 2024 instead of Aug 23, 2024) for multiple insiders including Wajid Ali .
Employment Terms
Change-in-Control and Severance Economics (CFO participation in Lumentum CIC Plan)
| Scenario | Cash Severance | Equity Acceleration | COBRA |
|---|---|---|---|
| Qualifying termination within CIC Coverage Period (double trigger) | 2 years base salary + 200% of greater of target annual bonus or 3-year average bonus | Accelerated vesting of outstanding equity; performance awards at actual for completed periods and 100% of target for uncompleted periods | Up to 18 months |
| Termination w/o Cause or for Good Reason outside CIC Coverage Period | 1x base salary + 1x target/average bonus | Time-based awards accelerate as to 9 months of scheduled vesting; performance awards accelerate pro-rata/earned portions per plan terms | Up to 12 months |
| Death or Disability outside CIC Period | 100% acceleration of outstanding equity (actual for completed periods; 100% target for uncompleted) | As stated | N/A |
Potential payments table (FY2025 valuation at $94.75/share) shows for Wajid Ali:
- Outside CIC termination w/o cause or for good reason: Salary $556,000; AIP $500,400; Equity $6,950,355; COBRA $25,375; Total $8,032,130 .
- Within CIC Coverage Period: Salary $1,112,000; AIP $1,000,800; Equity $11,731,945; COBRA $38,063; Total $13,882,808 .
Other governance practices:
- No tax gross-ups; no repricing; double-trigger acceleration only; independent Compensation Committee; robust clawback; stock ownership requirements .
Investment Implications
- Strong pay-for-performance alignment: FY2025 AIP paid at 132.19% based on outsized operating income and revenue, with negative discretion applied; LTIP PSUs now 100% financial/rTSR, eliminating non-financial goals—improving link to shareholder returns .
- Retention risk moderated: Despite depressed PSU outcomes for FY2023–FY2025 (24%), FY2024–FY2026 and FY2025–FY2027 designs pivot to revenue and rTSR; Ali’s significant outstanding PSUs and FY2025 vesting ($2.29M realized) provide ongoing retention hooks .
- Alignment safeguards: 2x salary ownership guideline, hedging/pledging ban, and robust clawback policy mitigate misalignment risks; no tax gross-ups and double-trigger CIC terms limit shareholder-unfriendly outcomes .
- Trading signal watchouts: Large PSU/RSU vesting and AIP PSU grants indicate recurring supply; late August 2024 Form 4 administrative delay noted, but no pledging; monitor any 10b5‑1 plans or post‑vesting disposals for incremental selling pressure around vest dates .