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Infinera expands stock incentive plan by 7.1 million shares

EditorNatashya Angelica
Published 2024-06-12, 07:04 p/m
© Reuters.
INFN
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SAN JOSE, CA – Infinera (NASDAQ:INFN) Corporation (NASDAQ:INFN), a manufacturer of telephone and telegraph apparatus, announced the approval of an amendment to its Equity Incentive Plan, increasing the authorized shares for issuance by 7.1 million. This decision was made during the Annual Meeting of Stockholders held on Tuesday.

The amended 2016 Equity Incentive Plan, which now includes the additional shares, was part of the agenda at the company's annual meeting. Infinera's stockholders voted in favor of the proposal, with 163,963,491 votes for, 1,741,948 against, and 81,959 abstentions. The plan's expansion is aimed at providing a larger pool of shares for future grants to employees and officers, aligning their interests with those of the shareholders.

In addition to the incentive plan's amendment, the stockholders elected three Class II directors to the Board for a three-year term expiring in 2027. The elected directors are David W. Heard, Paul J. Milbury, and David F. Welch, Ph.D. They will join existing board members Christine B. Bucklin, Gregory P. Dougherty, Sharon E. Holt, Roop K. Lakkaraju, Amy H. Rice, and George A. Riedel.

Furthermore, the stockholders approved, on an advisory basis, the compensation of the company's named executive officers as described in the Proxy Statement for the fiscal year 2023. The approval serves as an endorsement of the company's executive compensation practices.

Lastly, the appointment of Ernst & Young LLP as Infinera's independent registered public accounting firm for the fiscal year ending December 28, 2024, was ratified. The approval ensures continuity in the company's financial auditing processes.

Infinera's SEC filing on the same day confirmed these decisions, providing transparency and legal documentation for the corporate actions taken. The information is based on a press release statement.

The approval of these proposals reflects the confidence of Infinera's shareholders in the company's governance and strategic direction. The expanded incentive plan is set to support the company's growth initiatives by attracting and retaining key talent in the competitive technology industry.

In other recent news, Infinera Corporation, a global supplier of optical networking solutions, has been grappling with Nasdaq noncompliance notices due to delays in filing required financial reports. The company has since submitted the overdue annual report and is actively working on regaining compliance within the stipulated timeframe by Nasdaq.

On the financial front, Infinera recently reported a revenue shortfall for the first quarter of fiscal 2024, with a projected year-over-year revenue decline of 1% to 5% compared to 2023. Despite these challenges, the company remains optimistic about its long-term growth prospects, with a target growth rate of 8% to 12% in 2025.

Infinera's first-quarter earnings conference call highlighted strong bookings and strategic deal momentum, with contracts potentially worth over $1 billion. The company also reported an operating loss of $25.9 million, with an operating margin of -8.4%.

These recent developments underscore Infinera's commitment to improving operational efficiency and executing its strategic plans, despite the current market downturn. The company's future outlook is buoyed by several design wins, including an 800-gig win and a new North American contract, which are expected to drive future growth.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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