Wupen Yuen
Lumentum HoldingsAbout Wupen Yuen
Wupen Yuen (age 56) is President, Cloud and Networking at Lumentum (LITE). He joined Lumentum via its acquisition of NeoPhotonics in August 2022 and previously led Lumentum’s datacom and telecom transmission businesses; he holds a PhD and MS in Electrical Engineering from Stanford and a BS in Electrical Engineering from National Taiwan University, with executive education at Harvard Business School and Chicago Booth . Company performance during FY2025 included revenue of $1,645 million (+21% YoY), adjusted gross margin expansion to 34.7% (+450 bps), adjusted operating margin of 9.7% (+1,030 bps), and an 86% one-year TSR, as Lumentum accelerated in AI/datacenter optics and networking .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Lumentum | President, Cloud and Networking platform | 2025–present | Leads cloud/networking growth in AI/datacenter optics; prior roles included SVP & GM for telecom transmission and datacom units (Aug 2022–Oct 2023) . |
| NeoPhotonics | Chief Product Officer; SVP & GM | 2018–2022; 2014–2018 | Drove product/GM leadership across tunable lasers and coherent modules; key executive leader prior to Lumentum acquisition . |
| NeoPhotonics | SVP Product & Technology Development; VP Product Development & Engineering; Director Business Development | 2005–2014 | Built product and technology roadmaps across coherent optics, scaling product development capabilities . |
| Bandwidth9 | Chief Technology Officer | 2002–2004 | Led technology strategy at a tunable laser telecom company . |
Fixed Compensation
| Metric | FY2024 | FY2025 |
|---|---|---|
| Base Salary ($) | 449,433 | 504,000 |
| Target Bonus (% of Salary) | 100% | 100% |
| AIP Cash Payout ($) | 60,025 | 162,238 |
| Retention/Sign-on Bonuses ($) | – | 325,000 (retention bonus linked to NeoPhotonics acquisition) |
| All Other Compensation ($) | 13,069 | 12,228 |
| Total Compensation ($) | 5,608,344 | 5,391,172 |
Notes:
- FY2025 AIP paid at 132.19% of target for NEOs after negative discretion; up to 100% of target was delivered in PSUs, with any excess paid in cash .
Performance Compensation
FY2025 AIP Metrics and Outcome
| Metric | Weight | Threshold | Target | Maximum | Actual | Payout Contribution |
|---|---|---|---|---|---|---|
| Adjusted Organic Operating Income ($M) | 60% | 72.6 | 121.0 | 151.3 | 160.1 | 120.00% |
| Consolidated Organic Revenue ($M) | 40% | 1,249 | 1,561 | 1,717 | 1,645 | 61.51% |
| Discretionary Reduction (incl. Quality Modifier) | – | – | – | – | – | (27.2%) |
| Total AIP Payout (% of Target) | – | – | – | – | – | 132.19% |
- AIP design: 60% adjusted organic operating income, 40% organic revenue; quality modifier up to ±20% applied, with committee using negative discretion to align payouts with execution quality .
FY2025 Equity Grants (Annual LTIP and AIP PSU)
| Grant Type | Grant Date | Units (Target) | Fair Value ($) | Key Vesting / Metrics |
|---|---|---|---|---|
| AIP PSUs | 8/21/2024 | 9,218 | 519,803 | Vests upon FY2025 performance certification or first anniversary; up to 100% of target paid in stock . |
| LTIP PSUs (FY2025–FY2027) | 8/21/2024 | 34,296 (max 68,592) | 1,933,951 | 67% FY2027 total revenue; 33% rTSR (FY2025–FY2027 vs S&P Telecom Select Industry Index); aggregate PSU cap 200%; no banking . |
| RSUs (Annual) | 8/21/2024 | 34,296 | 1,933,951 | Time-based; 1/3 on first anniversary, then quarterly over two years; retention-oriented . |
- Company does not generally grant stock options in recent years (except Cloud Light option conversions); none disclosed for Yuen .
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Beneficial Ownership | 23,638 shares as of Aug 29, 2025; indicated as less than 1% of shares outstanding . |
| Shares Outstanding (reference) | 70,843,924 as of Aug 29, 2025 . |
| Unvested Time-based RSUs at FY2025-end | 34,296 (2024 grant) plus earlier RSU tranches (e.g., 14,643; 7,810; 1,233; 705; 510; 421) reflecting prior-year grants . |
| Unearned/Unvested PSUs at FY2025-end | FY2025 LTIP PSUs: 34,296 target; FY2025 AIP PSUs: 9,218 target; prior cycles FY2023/24 PSUs remain outstanding per schedule . |
| Stock Ownership Guidelines | Executives: 2x base salary; compliance/on-track status affirmed as of FY2025 . |
| Hedging/Pledging | Prohibited under insider trading policy (no hedging or pledging of Lumentum securities) . |
| Clawback | Company clawback policy compliant with SEC/exchange rules for recovering incentive compensation after restatements . |
Employment Terms
Change-in-Control and Severance Economics (Illustrative as of June 28, 2025)
| Scenario | Salary ($) | Bonus/AIP ($) | Equity Acceleration ($) | COBRA ($) | Total ($) |
|---|---|---|---|---|---|
| Death/Disability (outside CIC) | – | – | 12,681,530 | – | 12,681,530 |
| Termination w/o Cause or for Good Reason (outside CIC) | 504,000 | 504,000 (AIP at target) | 6,388,898 | (policy: up to 12 months) | 7,396,936 |
| Termination w/o Cause or for Good Reason (within CIC period) | 1,008,000 (2x salary) | 1,008,000 (200% target bonus) | 11,808,124 | (policy: up to 18 months) | 13,824,182 |
Key terms:
- Outside CIC: cash severance equal to 100% salary + 100% target bonus; time-based equity accelerates nine months; PSUs accelerate pro rata or at earned levels depending on performance period completion; COBRA reimbursement up to 12 months .
- Within CIC (double trigger): accelerated vesting of outstanding equity (performance awards at actual or 100% of target for uncompleted periods), lump sum of two years’ base salary + 200% of bonus, COBRA up to 18 months .
- Equity plans incorporate no single-trigger vesting acceleration upon change-in-control (only unassumed awards accelerate) and disallow repricing/exchange programs; no tax gross-ups .
Investment Implications
- Pay-for-performance alignment: FY2025 annual incentives were fully financial with PSU delivery up to target; LTIP PSUs shifted to 100% financial/rTSR weighting with higher emphasis on revenue growth—supporting direct linkage to value creation in AI/datacenter optics .
- Vesting cadence and selling pressure: Significant RSU tranches from Aug 2024 grants vest 1/3 on first anniversary and quarterly thereafter, implying regular liquidity events; AIP PSUs vest on certification or first anniversary—manage potential insider selling windows accordingly .
- Retention risk: Historical long-term PSU payouts (FY2023 cycle paid at 24%) were depressed amid sector trough; forward cycles (FY2024–2026, FY2025–2027) are more likely to pay with improved execution and market backdrop, mitigating retention concerns in the executive suite .
- Alignment safeguards: Prohibitions on hedging/pledging, robust clawback, double-trigger CIC, and stock ownership guidelines enhance shareholder alignment and reduce governance red flags; no tax gross-ups or option repricing .
- Strategic execution lever: Yuen’s leadership across cloud/networking is central to Lumentum’s AI/datacenter ramp (800G, lasers, optical circuit switches) underpinning FY2025 margin and revenue gains—continued performance against FY2027 revenue and rTSR goals will be the key driver of long-term PSU value realization .