Viavi Solutions Inc. (NASDAQ:VIAV) Files An 8-K Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers

(e) On May 22, 2019, the Board of Directors (the “Board”) of Viavi Solutions Inc. (the “Company”) adopted the Company’s Executive Variable Pay Plan for fiscal year 2020 (the “2020 Executive VPP”) under which the Company’s executive team, including the Company’s named executive officers (“NEOs”), have the opportunity to earn incentive bonuses based upon semi-annual performance metrics.

Actual cash incentive payments awarded under the 2020 Executive VPP will be based upon (1) the achievement of a revenue objective (the “Revenue Target”) compared to the Company’s annual operating plan (“AOP”), (2) the achievement of a non-GAAP operating profit objective (the “Profitability Target”) compared to the AOP, (3) the achievement of a bookings objective (the “Bookings Target”) compared to the AOP, and (4) the achievement of certain individual objectives (the “Individual Target”). Payments under the 2020 Executive VPP will be measured and paid semi-annually. Payments will range from 0% to 150% of an eligible executive’s target incentive opportunity (“TIO”) with respect to the Revenue Target and Profitability Target. For the Bookings target, payments will be capped at 250% of the eligible executive’s TIO. For the Individual Target, payments will be capped at 50% of an eligible executive’s TIO.

Oleg Khaykin, the Company’s Chief Executive Officer, and Amar Maletira, the Company’s Chief Financial Officer, will participate in the 2020 Executive VPP as Corporate Executives. For Corporate Executives, the Revenue Target and Profitability Target will be calculated based on company-wide performance and will be weighted 40% on Revenue Target achievement and 40% on Profitability Target achievement. For both Mr. Khaykin and Mr. Maletira, the Individual Target will be based on strategic goals as well as company initiatives and weighted at 20%.

Paul McNab, the Executive Vice President and Chief Marketing & Strategy Officer and Ralph Rondinone, the Senior Vice President, Global Operations and Services, Network Services Enablement (“NSE”) will participate as NSE Executives. For NSE Executives, the Revenue and Profitability Target will be calculated based on the performance of the NSE business segment and will be weighted 40% on Revenue Target achievement and 40% on Profitability Target achievement. For Mr. McNab, the Individual Target will be based on strategic goals and weighted at 20%. For Mr. Rondinone, the Individual Target will be based on cost savings and operational goals and be weighted at 20%.

Gary Staley, the Senior Vice President, Global Sales and Network and Service Enablement will participate as an NSE Sales Executive. For Mr. Staley, the Revenue Target, Profitability Target and Bookings Target will be calculated based on the performance of the NSE business segment and will be weighted 50% on Revenue Target achievement, 20% on Profitability Target achievement and 30% on Bookings Target achievement.

About Viavi Solutions Inc. (NASDAQ:VIAV)

Viavi Solutions Inc. (Viavi) is a provider of network test, monitoring and assurance solutions to communications service providers, enterprises and their ecosystems. The Company also offers thin film optical coatings, providing light management solutions to anti-counterfeiting, consumer and industrial, government and healthcare and other markets. The Company’s segments include Network Enablement (NE), Service Enablement (SE), and Optical Security and Performance Products (OSP). The NE segment provides testing solutions that access the network to perform build-out and maintenance tasks. The SE segment offers solutions, which are embedded systems that yield network, service and application performance data. The OSP segment provides optical security solutions. The OSP segment’s security offerings for the currency market include Optically Variable Pigment (OVP), Optically Variable Magnetic Pigment (OVMP) and banknote thread substrates.