Document

DEF 14A 1 a2021proxydef14a.htm DEF 14A Document

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

SCHEDULE 14A

Proxy Statement Pursuant to Section 14(a) of the

Securities Exchange Act of 1934

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Commvault Systems, Inc.
(Name of Registrant as Specified In Its Charter)
(Name of Person(s) Filing Proxy Statement, if other than the Registrant)

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Commvault Systems, Inc.

1 Commvault Way

Tinton Falls, NJ 07724

(732) 870-4000

June 25, 2021

To the Stockholders of Commvault Systems, Inc.:

You are cordially invited to attend the 2021 Annual Meeting of Stockholders of Commvault Systems, Inc. (which we refer to as “we”, “us”, “our”, “Commvault,” “our company” or the “Company”). The Annual Meeting will be held on Thursday, August 19, 2021, at 9:00 a.m., Eastern time as a virtual meeting that can be accessed on the following site: http://ir.commvault.com/annual-meeting. We believe that a virtual meeting is prudent in light of the ongoing public health and safety considerations posed by the pandemic.

We are taking advantage of the Securities and Exchange Commission rules that allow companies to furnish proxy materials to stockholders via the Internet. This electronic process gives you fast, convenient access to the materials, reduces the impact on the environment and reduces our printing and mailing costs. If you received a Notice Regarding the Availability of Proxy Materials by mail, you will not receive a printed copy of the proxy materials, unless you specifically request one. The Notice Regarding the Availability of Proxy Materials instructs you on how to access and review all of the important information contained in the Proxy Statement and Annual Report, as well as how to submit your proxy over the Internet or by telephone. If you would still like to receive a printed copy of our proxy materials, you should follow the instructions for requesting these materials which are included in the Notice Regarding the Availability of Proxy Materials.

In the materials accompanying this letter, you will find a Notice of Annual Meeting of Stockholders and a Proxy Statement relating to the proposals you will be asked to consider and vote upon at the Annual Meeting. The Proxy Statement includes general information about Commvault as well as information on the specific proposals you will be asked to consider and vote upon at the Annual Meeting. A record of our activities for the fiscal year ended March 31, 2021 is contained in the Annual Report to stockholders, a copy of which is available online as described in the Notice Regarding the Availability of Proxy Materials and a printed copy is available upon request and without charge to stockholders entitled to vote at the Annual Meeting.

All stockholders are invited to attend the Annual Meeting virtually. Whether or not you plan to attend the Annual Meeting, it is important that your shares be represented and voted at the meeting. Therefore, I urge you to promptly vote by either using our telephone or internet voting procedures or by completing, executing and returning the proxy card which you have received from us. If you attend the Annual Meeting (virtually), you may vote at the time of the meeting even if you have previously submitted your proxy.


Very truly yours,

NICHOLAS ADAMO Chairman of the Board

Commvault Systems, Inc.

1 Commvault Way

Tinton Falls, NJ 07724

(732) 870-4000

NOTICE OF ANNUAL MEETING OF STOCKHOLDERS

TO BE HELD ON AUGUST 19, 2021

Important Notice Regarding the Availability of Proxy Materials for the Meeting to Be Held on August 19, 2021

The Annual Meeting of Stockholders of Commvault Systems, Inc. will be held virtually on Thursday, August 19, 2021, at 9:00 a.m., Eastern time on the following website: http://ir.commvault.com/annual-meeting.

The purposes of the meeting are:

1. To elect three Class III Directors for a one-year term, as we begin to de-stagger the Board;

2. To ratify the appointment of Ernst & Young LLP as independent public accountants for the fiscal year ending March 31, 2022;

3. To approve additional shares to be available for grant under the Company’s 2016 Omnibus Incentive Plan, as amended by the Fifth Amendment (the “2016 Incentive Plan”);

4. To vote, on an advisory basis, on executive compensation; and

5. To transact such other business as may properly come before the meeting, or any adjournment or postponement thereof.

Only stockholders of record as of the close of business on June 24, 2021 are entitled to notice of, and to vote at, the Annual Meeting and any adjournment or postponement thereof. Stockholders of record will be mailed a Notice Regarding the Availability of Proxy Materials on or before July 9, 2021, which provides stockholders with instructions on how to access the proxy materials on the Internet, and if they prefer, how to request paper copies of these materials.

Each stockholder is urged to either to utilize our telephone or Internet voting procedures to submit a proxy or to complete, date and sign the proxy card which you have received from us and return it to us in the envelope which we have provided and which requires no postage if mailed in the United States, whether or not you plan to attend the Annual Meeting virtually. Utilizing our telephone or Internet voting procedures to submit your proxy or sending in your proxy card will not prevent you from voting at the Annual Meeting.

This proxy statement and our annual report to stockholders are available at www.edocumentview.com/CVLT.


By Order of the Board of Directors

WARREN H. MONDSCHEIN Vice President, General Counsel and Secretary Chief Compliance Officer

Tinton Falls, New Jersey

June 25, 2021

Commvault Systems, Inc.

1 Commvault Way

Tinton Falls, NJ 07724

(732) 870-4000

PROXY STATEMENT

FOR THE ANNUAL MEETING OF STOCKHOLDERS

TO BE HELD AUGUST 19, 2021

June 25, 2021

This statement is furnished in connection with the solicitation on behalf of the Board of Directors of Commvault Systems, Inc. (which we refer to as “we”, “us”, “our”, “Commvault,” “our company” or the “Company”) of proxies to be voted at the Annual Meeting of Stockholders on August 19, 2021, or at any adjournment or postponement thereof. This proxy statement and the associated proxy card are first being made available at www.edocumentview.com/CVLT, and we intend to begin distribution of the Notice Regarding the Availability of Proxy Materials to stockholders, on or about July 9, 2021. A copy of our annual report on form 10-K for the fiscal year ended March 31, 2021, which includes audited financial statements, is also being made available concurrently with the proxy statement at www.edocumentview.com/CVLT.

Participating in the Virtual Annual Meeting

This year’s Annual Meeting will be accessible through the Internet. We are conducting a virtual online Annual Meeting this year in light of the ongoing public health and safety considerations posed by the pandemic. We have worked to provide an online experience available to all stockholders regardless of their location and to offer stockholders the ability to participate in the meeting. The accompanying proxy materials include instructions on how to participate in the meeting and how you may vote your shares.

To participate in the Annual Meeting, please access the meeting website at http://ir.commvault.com/annual-meeting. Please note that you will be required to establish your identity as a shareholder in order to vote and to view the list of registered stockholders as of the record date during the meeting. Please have the control number found on your Notice of Internet Availability of Proxy Materials available and, if necessary, other appropriate evidence of your share ownership.

Stockholders are able to submit questions for the Annual Meeting’s question and answer session prior to or during the meeting through http://ir.commvault.com/annual-meeting. The Annual Meeting will be available for replay following the meeting on our investor relations website.

We encourage you to access the Annual Meeting before it begins. Online check-in will be available at http://ir.commvault.com/annual-meeting approximately 15 minutes before the meeting starts on August 19, 2021. If you have difficulty accessing the meeting, you may also listen to the meeting telephonically by calling the number posted on our inventor relations website. Further technical assistance can be obtained by contacting us through the information posted on the site.

Voting Rights and Solicitation

June 24, 2021 was the record date for the determination of stockholders entitled to vote at the Annual Meeting. On that date, 46,078,531 shares of common stock were outstanding and entitled to vote. Each stockholder is entitled to one vote for each share of common stock held of record. A list of stockholders entitled to vote at the Annual Meeting will be available for examination by stockholders by arrangement made with Commvault during the 10 days preceding the meeting and also will be available for examination during the Annual Meeting. Information regarding how to examine the stockholder list is available at the meeting website at http://ir.commvault.com/annual-meeting.

Stockholders may provide voting instructions by completing, executing and returning the proxy card which we have provided. Alternatively, stockholders may submit a proxy over the Internet or by telephone in accordance with the instruction set forth on the proxy card or the Notice Regarding Availability of Proxy Materials. All properly completed, unrevoked proxies received prior to the close of voting at the Annual Meeting will be voted in accordance with the instructions provided. If a

properly executed, unrevoked written proxy card submitted by a record holder does not specifically direct the voting of shares, the shares represented by such proxy will be voted (i) FOR the election of all nominees for election as director described in this proxy statement, (ii) FOR the ratification of the appointment of Ernst & Young LLP as our independent public accountants for the fiscal year ending March 31, 2022, (iii) FOR the approval of additional shares to be available for grant under the 2016 Incentive Plan, as amended by the Fifth Amendment, (iv) FOR approval, on an advisory basis, of executive compensation, and (v) in accordance with the judgment of the persons named in the proxy as to such other matters as may properly come before the Annual Meeting. If you are a beneficial owner of shares, the broker will ask you how you want your shares to be voted. If you give the broker instructions, the broker will vote your shares as you direct. If your broker does not receive instructions from you about how your shares are to be voted, one of two things can happen, depending on the type of proposal. Brokers have discretionary power to vote your shares with respect to “routine” matters, but they do not have discretionary power to vote your shares on “non-routine” matters. Brokers holding shares beneficially owned by their clients do not have the ability to cast votes with respect to the election of directors, executive compensation, amendments to the Company’s Amended and Restated Certificate of Incorporation or amendments to the Company’s incentive plans (including the addition of additional shares thereunder) unless they have received instructions from the beneficial owner of the shares. It is therefore important that you provide instructions to your broker so that your vote is counted with respect to Proposal No. 1 (the election of three Class III Directors for a one-year term), Proposal No. 3 (the approval of additional shares to be available for grant under the 2016 Incentive Plan) and Proposal No. 4 (the advisory vote on executive compensation).

A proxy may be revoked at any time prior to the voting at the Annual Meeting by submitting a later-dated proxy (including a later-dated proxy via the Internet or telephone), giving timely written notice of such revocation to the Secretary of our Company or by attending the Annual Meeting and voting at that time.

The presence at the Annual Meeting, in person (virtually) or by proxy, of holders of a majority of the issued and outstanding shares of common stock as of the record date is considered a quorum for the transaction of business. If you submit a properly completed proxy or if you appear at the Annual Meeting to vote in person (virtually), your shares of common stock will be considered part of the quorum. Once a quorum is present, voting on specific proposals may proceed.

Assuming the presence of a quorum, the affirmative vote of a majority of the votes cast at the Annual Meeting (in person or by proxy) is required (1) to elect directors, (2) to ratify Ernst & Young LLP as our independent public accountants for the fiscal year ending March 31, 2022, and (3) to approve additional shares to be available for grant under the Company’s 2016 Incentive Plan. As a non-binding, advisory vote, there is no specific approval requirement for the advisory vote on executive compensation. However, the Board of Directors will consider that the stockholders have approved executive compensation on an advisory basis if the advisory vote on executive compensation receives the affirmative vote of a majority of the votes cast on such proposal.

In order to assure that your votes, as a record holder, are tabulated in time to be voted at the Annual Meeting, you must complete your voting over the Internet or by telephone so that it is received by 3:00 a.m. Eastern time on August 19, 2021. Similarly, in order to assure that your votes, as a beneficial holder, are tabulated in time to be voted at the Annual Meeting, you must submit your voting instructions, so that your broker will be able to vote, by 11:59 p.m. Eastern time on August 18, 2021. If you attend the Annual Meeting virtually, you may vote at that time even if you have previously submitted your proxy.

If you choose to vote your shares at the Annual Meeting, you will be required to provide your control number, which is included in the Notice Regarding the Availability of Proxy Materials that you received. Shares held in “street name” through your broker, bank or other nominee may be voted at the meeting by you only if you obtain a signed proxy from the stockholder of record giving you the right to vote the shares. You will be asked to submit such signed proxy to Commvault via the email address provided in the meeting website at or prior to the Annual Meeting, along with an account statement or letter from the broker, bank or other nominee indicating that you are the beneficial owner of the shares and that you were the beneficial owner of the shares on June 24, 2021.

Effect of Abstentions and Broker Non-Votes

Abstentions will be counted for the purposes of establishing a quorum, but will not be counted as a vote cast either for or against a nominee or any other matter, and accordingly will be disregarded for the purpose of determining whether a nominee was elected as director or a matter was approved. As a result, abstentions have no effect on the outcome of the election of directors, the ratification of the appointment of Ernst & Young LLP as our independent public accountants, or approval of additional shares to be available for grant under the Company’s 2016 Incentive Plan. Similarly, abstentions have no effect on the advisory proposal to approve executive compensation.

If you hold shares through a broker or other nominee, your broker or nominee is permitted to exercise voting discretion only with respect to certain, routine matters. Broker non-votes are shares held by brokers or other nominees that do not have discretionary voting authority with respect to a matter and have not received specific voting instructions from the beneficial owner. Broker non-votes will be counted for purposes of establishing a quorum, but will not be counted as a vote cast either for or against a nominee or any other matter. As a result, broker non-votes have no effect on the outcome of the vote on each proposal.

Brokers who have not received voting instructions from beneficial owners may vote in their discretion with respect to Proposal No. 2 (the ratification of the appointment of our independent auditors).

Leadership and Governance Highlights

Fiscal year 2021 was an exciting year for our company, with new leadership and business developments driving financial success. We delivered record revenue, despite the ongoing COVID-19 pandemic.

Leadership Changes

•Building on our new company leadership. Our President and Chief Executive Officer, Mr. Sanjay Mirchandani, joined our company in February 2019. He has made it a priority to bring world-class talent to our company. Since Mr. Mirchandani’s arrival, we have welcomed six new business leaders to our senior leadership team. We have welcomed a number of other key individuals across the company as well, greatly strengthening our senior and mid-level leadership.

•Independent leadership for the Board. Our independent Chairman of the Board, Mr. Nicholas Adamo, joined the Board in August 2018 as an independent Director and succeeded to the role of Chairman of the Board in April 2019. The separation of the roles of CEO and Chairman represents strong corporate governance and creates dynamic company leadership.

•Significant new Board membership. Of our current eleven member Board, eight directors have joined the Board since 2018. This has significantly decreased the average board tenure and age of our Board.

•Increased gender diversity at the Board and management levels. Since 2018, we have added three women to the Board and added two women to our senior management team.

Corporate Social Responsibility Developments

•Last year, we published our inaugural corporate social responsibility report. This report highlighted the strength and passions of our company and our employees, and marked our commitment to our investors, our employees, our customers and our community to continue to make these matters a priority as we strive to be good corporate citizens.

•We continued to showcase and build upon our commitment to sustainability through the publication of our second annual report in June 2021. This report highlights, among other items, our commitments to inclusion and diversity and to supporting our employees during the COVID-19 pandemic.

•In fiscal year 2020, we joined the United Nations’ Business Avengers Program, which unites 17 global companies in a commitment to help deliver on the Sustainable Development Goals that have been agreed to by UN nations. Commvault has taken on the mantle of goal No. 12, Responsible Consumption and Production, and is actively working on this initiative.

We are proud of these and other CSR initiatives and activities at our company, and look forward to sharing more information about them. The report can be found on our website.

Corporate Governance Developments

•Implementation of Clawback Policy. In April 2021, we implemented a "clawback" policy for cash and equity incentive awards to certain of our executives. This policy, which is broader than currently required by applicable law, allows for the recoupment of such compensation in the event that Commvault is required to prepare a financial restatement, whether or not that restatement is due to fraud or other misconduct.

•Implementation of Proxy Access Provision. In May 2019, we implemented a “proxy access” provision in our Amended and Restated Bylaws, which gives shareholders the ability to nominate director candidates for inclusion in our proxy materials.

•Increased Board Diversity. In 2018, the Board adopted a policy on Board diversity, which prioritizes a Board comprised of individuals with diverse backgrounds. Our recent Board appointments reflect these considerations, and we believe that the diverse range of experiences and backgrounds of our new Board members greatly benefits our Board and our company.

•Continued Advisory Vote on Compensation. Consistent with our prior practice, we continue to seek shareholder support on an annual basis for our compensation of senior executives. See “Proposal No. 4” in this Proxy Statement.

We believe these changes and practices represent strong corporate governance measures that are in the best interests of our company and its shareholders.

PROPOSAL NO. 1

ELECTION OF DIRECTORS

Our Board of Directors is currently divided into three classes, with one class of directors elected for a three-year term at each annual meeting. Each class consists of four directors, except for Class I which consists of three directors. Previously, each director held office until the third annual meeting after the meeting at which such director was elected and until his or her successor was duly elected and qualified or until his or her earlier resignation, removal or death. However, at our 2020 Annual Meeting, our stockholders voted in favor of our proposal to amend our corporate governance documents to de-classify our Board of Directors. Once fully implemented, all directors will stand for re-election on an annual basis and the Board of Directors will no longer be divided into classes. As approved by our stockholders, the de-classification of our Board is being implemented over three fiscal years, and will be completed in 2023 once the class of directors elected at the 2020 Annual Meeting has completed its three-year term. Accordingly, this fiscal year marks the first year in which a class of directors will be elected for a one-year term only.

The persons named as proxy voters in the proxy card for our 2021 Annual Meeting, or their substitutes, will vote your proxy for all the nominees, each of whom has been designated as such by the Board of Directors, unless otherwise indicated in your proxy. Commvault has no reason to believe that the nominees named herein will be unavailable to serve as directors. However, in the event that any nominee for director withdraws or for any reason is not able to serve as a director, we will vote your proxy for the remainder of those nominated for director (except as otherwise indicated in your proxy) and for any replacement nominee designated by the Nominations and Governance Committee of the Board of Directors.

You may vote for or against, or you may abstain from voting on, any or all of the director nominees. Assuming a quorum is present, the affirmative vote of a majority of votes cast at the Annual Meeting (in person virtually or by proxy) will be required for the election of directors.

OUR BOARD OF DIRECTORS

The following table shows information as of June 24, 2021 with respect to each person who is a current director or director nominee. Biographical information for each continuing director as well as each director nominee is set forth immediately following the table.


Name	Age	Position	Director Since
Nicholas Adamo	57	Chairman of the Board	2018
Martha H. Bejar (3)	59	Director	2018
R. Todd Bradley (1)(4)	63	Director	2020
Keith Geeslin (1)	68	Director	1996
Vivie “YY” Lee (1)	54	Director	2018
Sanjay Mirchandani	57	Director, President and Chief Executive Officer	2019
Charles Moran (2)(4)	66	Director	2018
Allison Pickens (3)	36	Director	2020
Arlen Shenkman (2)(4)	50	Director	2020
Gary B. Smith (3)	60	Director	2004
David F. Walker (2)	67	Director	2006

(1)Member of the Compensation Committee

(2)Member of the Audit Committee

(3)Member of the Nominations and Governance Committee

(4) Member of the Operating Committee

Nominees for Election

Keith Geeslin has served as a director of our company since May 1996 and is chairman of our Compensation Committee. Mr. Geeslin has been a partner at Francisco Partners, a global private equity firm, since January 2004, prior to which Mr. Geeslin spent 19 years with the Sprout Group, the venture capital arm of Credit Suisse’s asset management business, which

conducts its activities through affiliates of Credit Suisse Securities (USA) LLC. Prior to joining the Sprout Group, Mr. Geeslin was the general manager of a division of Tymshare, Inc, a provider of public computer and network services and held various positions at its Tymnet subsidiary from 1980 to 1984. He was also previously a staff member of the U.S. Senate Commerce Committee. Mr. Geeslin obtained his bachelor’s degree in electrical engineering from Stanford University and master’s degrees from Stanford University and Oxford University. Mr. Geeslin also serves on the board of directors of Synaptics, Inc. and Allston Trading, LLC.

Mr. Geeslin’s private equity and venture capital experience, with a focus on technology sector companies, has given him an understanding of finance and of growth strategies, as well as experience in evaluating businesses in our company’s industry, all of which is very helpful to the Board of Directors. Originally representing one of our company’s initial investors, Mr. Geeslin has a long history with Commvault and its management, providing continuity to Board deliberations. Mr. Geeslin has held various public company directorships and brings that experience to the Board.

Vivie “YY” Lee has served as a director of our company since February 2018. Ms. Lee has served as Senior Vice President and Chief Strategy Officer of Anaplan, a SaaS software company, since September 2018. Prior to joining Anaplan, Ms. Lee served as Chief Executive Officer for FirstRain, a business analytics platform company, from 2015 until August 2018. She joined FirstRain in 2005 where she served as Chief Operating Officer before becoming CEO.

Prior to joining FirstRain, Ms. Lee served as General Manager of Worldwide Services at Cadence Design Systems. In that position, she merged several services divisions into an industry-leading advanced technology operation. She held P&L responsibility for the business spanning research and development, go-to-market, sales, and support across global regions including the US, UK/EU, India, China, and Japan. Before Ms. Lee’s tenure at Cadence, she co-founded the software company Aqueduct Software, an enterprise-class software development solution for automating application data collection, profiling and analysis during iterative development, testing and deployment. Bootstrapping the company from the ground-up, she secured top-tier VC financing, and ultimately led the company through acquisition by NetManage in 2000. Ms. Lee began her career at Bell Labs and has also worked at Synopsys and 8x8 (formerly Integrated Information Technology, Inc.) in various product management roles. Ms. Lee earned a bachelor of arts in mathematics from Harvard University.

Through her tenures at numerous start-up and mature Silicon Valley-based technology companies, Ms. Lee brings significant entrepreneurial and executive-level experience in the technology and software industry to the Board. Her expertise in the IT space is broad, and provides the Board with tech-focused insight and perspective in the critical areas of operations, marketing and strategic development.

Sanjay Mirchandani is the President and Chief Executive Officer of our company, and has served as a director since joining the company in February 2019. Prior to joining our company, Mr. Mirchandani served as the Chief Executive Officer of Puppet, Inc. (“Puppet”), an Oregon-based IT automation company. Mr. Mirchandani joined Puppet in May 2016 as President and Chief Operating Officer, and assumed the role of Chief Executive Officer in September 2016. Before joining Puppet, Mr. Mirchandani served as Corporate Senior Vice President and General Manager of Asia Pacific and Japan at VMware, Inc. from October 2013 to April 2016. From June 2006 to October 2013, Mr. Mirchandani held various senior leadership positions at EMC Corporation, including Chief Information Officer and leader of the Global Centers of Excellence. Prior to that, Mr. Mirchandani held various positions at Microsoft Corporation and Arthur Andersen LLP. Mr. Mirchandani has a masters of business administration degree from the University of Pittsburgh and earned a bachelor's degree in mathematics from Drew University.

Mr. Mirchandani brings a wealth of international business and start-up experience through his diverse well-rounded career in technology. As our Chief Executive Officer, Mr. Mirchandani brings his knowledge and perspective about critical company business strategies, financial position and operational matters into Board deliberations. His insight regarding the company's operations and future are critical to the successful functioning of the Board.

The Board of Directors recommends that you vote FOR each of the nominees listed above.

Class III Director Whose Term Expires at this Annual Meeting

Gary B. Smith is retiring from the Board of Directors at the expiration of his current term. His decision is not the result of any disagreement with the Company. Mr. Smith is currently Chairman of the Nominations and Governance Committee of the Board. He will remain on the Board and Chairman of the Nominations and Governance Committee until the Annual Meeting. The Company thanks Mr. Smith for his years of exemplary service to the Board.

Upon the expiration of Mr. Smith's term at the 2021 Annual Meeting, the total size of the Board will decrease by one member, resulting in a ten-member Board of Directors.

Continuing Directors

Class I Directors Whose Terms Expire in 2022

Nicholas Adamo has served as the Chairman of the Board since April 2019 and has served as a director of our company since August 2018. Mr. Adamo is a former senior executive of Cisco Systems, where he served a variety of sales and leadership roles over a 22 year career prior to his retirement in 2016. While there, Mr. Adamo served as the Senior Vice President (“SVP”) of the Americas, where he managed Cisco’s largest geographic region, with annual IT and communications sales of more than $26 billion, and was responsible for 6,500 employees working across 60 different countries. Mr. Adamo also served as the SVP of Cisco's $12 billion Global Service Provider organization, leading sales, service delivery and development for the company's top service provider customers, among various other roles. Prior to his tenure at Cisco, he spent more than a decade at IBM in various sales and management assignments. Since leaving Cisco in 2016, Mr. Adamo has consulted with a range of small scale tech companies, and currently serves on the boards of Lookout, Blue Danube Systems and GTT Communications. Mr. Adamo is also the founder and president of Making A Mark, Inc., located in Monmouth County, NJ, which is a charitable foundation dedicated to making a mark and empowering change through awareness, knowledge and inclusive opportunities targeting the environment and education. Mr. Adamo holds a bachelor of science degree in computer engineering from Columbia University.

Mr. Adamo is an experienced executive in the information technology industry, who brings a deep working knowledge of the industry and experience from both enterprise and service provider segments, that he can deploy to provide valuable insight and perspectives to our Board. He also has extensive experience and successes as a leader who is able to balance strategy and execution, foster long-standing strategic relationships, and guide business and technology discussions and decisions for shared success. This combination makes him an effective leader for our Board.

Martha Bejar has served as a director of our company since July 2018. Ms. Bejar is the co-founder and Chief Executive Officer of Red Bison Advisory Group, LLC, a position she has held since April 2013. Previously, Ms. Bejar held the position of the Chief Executive Officer of several private telecommunications and technology companies, including Unium Inc., Flow Mobile Inc., and Wipro Infocrossing Inc. She has also held executive positions at Microsoft Corporation, Nortel Networks Corporation, and Bell Communications Research. Ms. Bejar currently serves as a member of the board of directors of Lumen Technologies, Quadient S.A. and Sportman's Warehouse. In addition, Ms. Bejar serves on a non-for-profit board, the Board of Trustees at Rainier Scholars. Ms. Bejar earned an Advanced Management Program degree from Harvard Business School, graduated cum laude with a bachelor of science degree in Industrial Engineering from the University of Miami and also earned a master's of business administration from Nova Southeastern University.

Ms. Bejar has a strong track record of leadership with some of the world's leading corporations where she evidenced a proven ability to drive and support innovation in the technology and software space. She also provides the Board with a wealth of executive, strategic and financial experience in the industry which enables her to provide valuable insights regarding our company's operations and strategic development.

David F. Walker has served as a director of our company since February 2006 and is chair of our Audit Committee. Mr. Walker also serves on the board of directors and chairs the audit committee of Chico’s FAS, Inc. In addition, Mr. Walker previously served on the boards of directors of CoreLogic from 2010 and 2020, Atlantic Blue Group, Inc. during 2012, First Advantage Corporation from 2003 to 2009, Paradyne Networks from 2003 to 2005 and Technology Research Corporation from 2004 to 2010.

Mr. Walker was employed as the Director of the Accountancy Program and the Program for Social Responsibility and Corporate Reporting at the University of South Florida St. Petersburg from 2002 through 2009. Prior to joining the University

of South Florida, Mr. Walker was with Arthur Andersen LLP, having served as a partner in that firm from 1986 through 2002 and as partner in charge of the firm’s assurance and business advisory services practice for the Florida and Caribbean region. Mr. Walker earned a master’s of business administration from the University of Chicago Booth School of Business with concentrations in accounting, finance and marketing, and a bachelor of arts degree from DePauw University with majors in economics and mathematics and a minor in business administration. Mr. Walker is an NACD Board Leadership Fellow, a certified public accountant and a certified fraud examiner.

Mr. Walker’s governance, accounting and finance qualifications include an in depth understanding of risk oversight, accounting and financial reporting which is valuable to the Board of Directors, and he is an audit committee financial expert.

Class II Directors Whose Terms Expire in 2023

R. Todd Bradley has served as a director of our company since June 2020. Mr. Bradley recently joined One Equity Partners as an Operating Partner. He previously served as the Chairman and Chief Executive Officer of Mozido, a cloud-based mobile payment provider, from October 2015 to May 2017. Prior to that, Mr. Bradley served as the President of TIBCO Software Inc., a provider of infrastructure and business intelligence software, from June 2014 until it was acquired by Vista Equity Partners in December 2014. From 2005 to April 2014, Mr. Bradley served in a variety of roles at HP Inc. (“HP”), a manufacturer of computers and printing products, along with related technologies solutions and services, including most recently as Executive Vice President, Strategic Growth Initiatives from June 2013 to April 2014. Earlier in his career, Mr. Bradley served as President and CEO of Palm, Inc., a personal digital assistant and smartphone manufacturer, which was later acquired by HP. Mr. Bradley is currently a member of the board of directors of Mattel, Inc. where he serves on the compensation and audit committees,and of the board of directors of Spartronics LLC. Previously, he served as a member of the boards of directors of Eastman Kodak Company and TrueCar Inc. Mr. Bradley holds a B.S. from Towson University.

Mr. Bradley has significant leadership, finance, digital, marketing, technology and software experience. With decades of experience in the technology industry, Mr. Bradley has significant expertise leading global technology companies as a senior executive and director, particularly as they adapt to large-scale technological and competitive changes. His experience and expertise in these areas is of great value to our company and to our Board of Directors.

Charles “Chuck” Moran has served as a director of our company since July 2018. Mr. Moran is the founder of Skillsoft Plc., and served as its Chief Executive Officer and President from 1998 until his retirement in December 2015. He was also a director on the Skillsoft board. Prior to Skillsoft, Mr. Moran was the President and Chief Executive Officer of NETg National Education Training Group, a computer-based information technology training company, from 1995 –1997. Prior to NETg, Mr. Moran was the Chief Financial Officer and Chief Operations Officer of Softdesk, Inc, where he helped lead the company's successful initial public offering. Mr. Moran has previously held senior level sales and marketing positions at Insite Peripherals, Inc. and Archive Corporation. Mr. Moran currently serves as a member of the boards of directors of Manhattan Associates, Inc. and Duck Creek Technologies, and serves as a director and advisor to various private companies and private equity firms. Mr. Moran earned a master's of business administration from Suffolk University and a bachelor of science degree from Boston College.

With more than two decades of experience working with technology companies, Mr. Moran has extensive leadership experience in the industry and expertise in critical areas including operations, finance, sales, marketing and cloud/SaaS software, which are valuable to our Board. Mr. Moran's history and experience, including his various board memberships, also gives him financial expertise which he can deploy to great benefit to the company as a member of our Audit Committee.

Allison Pickens has served as a director of our company since July 2020. Ms. Pickens most recently served as Chief Operating Officer and previously held other executive roles at Gainsight, a SaaS company, from 2014 to 2020. She is the co-author of the book The Customer Success Economy, published by Wiley in the spring of 2020. Ms. Pickens previously worked at Bain Capital Private Equity as an associate from 2009 to 2011, where she evaluated investments in a range of industries, and Boston Consulting Group, where she was a management consultant to both public and private companies from 2007 to 2009. Ms. Pickens is a General Partner of The New Normal Fund, LP, a venture capital fund focused on Saas businesses, and is a Senior Advisor to Boston Consulting Group, where she advises on strategic transformations of technology companies. She is a member of the board of directors of Rainforest QA, a venture-backed SaaS company, and previously served as a member of the Board of eCompliance, a privately-funded SaaS company, from 2017 until its successful acquisition by Alcumus in 2019. She also previously served as the Executive-in-Residence at Bessamer Venture Partners from 2018 to 2020. Ms. Pickens has an MBA from the Stanford University Graduate School of Business and a B.A. from Yale University.

Ms. Pickens is a technology executive with significant experience driving growth and strategic transformation initiatives at SaaS companies, which make her a valuable addition to our Board of Directors. She has extensive experience coaching CEOs and executives in the software industry through her work at Gainsight and other advisory roles, through speaking engagements, and through the content she has authored, which earned her recognition as one of the Top Women Leaders in SaaS in 2018 by The Software Report. Ms. Pickens also has a unique breadth of experience that spans industries including software, investment management, and management consulting. She brings significant skill in finance, general management, mergers and acquisitions, strategy, and customer growth and retention to the Board.

Arlen Shenkman has served as a director of our company since July 2020. Mr. Shenkman currently serves as Executive Vice President and Chief Financial Officer at Citrix Systems, Inc. Mr. Shenkman joined Citrix in September 2019 from SAP, where he served as Executive Vice President and Global Head of Business Development and Ecosystems beginning in 2017. Prior to that role, Mr. Shenkman served as Chief Financial Officer of SAP North America, the company's largest business unit, from 2015 through 2017. Mr. Shenkman previously served as Global Head of Corporate Development for SAP from 2012 through 2015 and was a principal architect of SAP's rapid transformation into a cloud company. Mr. Shenkman has a J.D. from the University of Miami School of Law, an M.B.A. from the Fox School of Business at Temple University, and a bachelor's degree in political science from George Washington University.

Mr. Shenkman has substantial experience helping to lead large-scale business transformations for growth of SaaS and working with companies that specialize in complex-cloud environments and enterprise application software. He has significant financial experience, including in his current role as Chief Financial Officer for Citrix Systems, Inc., where he is responsible for all of the company's financial and capital management strategies, budgeting and planning, financial accounting, tax and treasury, investor relations, strategic alliances, and M&A. This experience makes Mr. Shenkman a valuable addition to our Audit Committee.

Mr. Shenkman also has significant experience managing large software companies, including in his current role at Citrix and in his former role as CFO of SAP North America, where he lead the finance functions across North America, including planning and forecasting, business streamlining, and overall financial management, in addition to his earlier experience leading SAP’s corporate development and M&A activities worldwide. Mr. Shenkman’s substantial record and experience at global SaaS companies make him well qualified to serve as Chair of the Operating Committee of the Board of Directors.

CORPORATE GOVERNANCE

Overview

We have established a comprehensive corporate governance plan for the purpose of defining responsibilities, setting high standards of professional and personal conduct and assuring compliance with such responsibilities and standards. As part of its annual review process, the Board of Directors monitors developments in the area of corporate governance. Listed below are some of the key elements of our corporate governance plan. Many of these matters are described in more detail elsewhere in this proxy statement.

Independence and Composition of our Board of Directors

•Ten of our eleven current directors are independent under the listing standards of The Nasdaq Stock Market, Inc. (“Nasdaq”).

•We have an independent chairman of the Board, Mr. Adamo, to keep the leadership of the Board separate from the leadership of the company.

•We have replaced a total of 8 directors since 2018, constituting more than 70% of our Board. This has substantially addressed the long-tenured composition of our Board.

•Three of the new directors that have joined the Board during this time are women, thereby significantly increasing the gender diversity of our Board.

•We have amended our Charter and Bylaws to end the classification of our Board, and are in the process of implementing that change. Once fully implemented, all directors will be nominated for election on an annual basis.

Majority Voting for Directors

•We have adopted a majority vote standard for the election of directors in an uncontested election.

•If an incumbent director does not receive a majority of the votes cast in an uncontested election, that director must promptly tender his or her irrevocable resignation to the Board of Directors, contingent upon acceptance by the Board of Directors.

Audit Committee

•All members meet the independence standards for audit committee membership under the Nasdaq listing standards and applicable Securities and Exchange Commission (“SEC”) rules.

•All members qualify as an “audit committee financial expert,” as defined in the SEC rules, and satisfy Nasdaq’s financial literacy requirements.

•The Audit Committee operates under a written charter that governs its duties and responsibilities, including its sole authority to appoint or replace our independent auditors.

•The Audit Committee has adopted policies and procedures governing the pre-approval of all audit and non-audit services provided by our independent auditors.

Compensation Committee

•All members meet the independence standards for compensation committee membership under the Nasdaq listing standards and applicable SEC rules.

•The Compensation Committee operates under a written charter that governs its duties and responsibilities, including the responsibility for executive compensation.

Nominations and Governance Committee

•All members meet the independence standards for nominating committee membership under the Nasdaq listing standards.

•The Nominations and Governance Committee operates under a written charter that governs its duties and responsibilities, including the responsibility for nominating directors and developing corporate governance guidelines.

Operating Committee

•All members meet the independence standards under the Nasdaq listing standards.

•The Operating Committee operates under a written charter that governs its duties and responsibilities, including to oversee the Company’s budgeting processes and to work with Company management to establish margin targets and a balanced capital allocation policy for the Company.

Corporate Governance Policies

•We have adopted Corporate Governance Policies, including qualification and independence standards for directors.

•We have implemented a “proxy access” provision in our corporate Bylaws, which gives stockholders the ability to nominate director candidates for inclusion in our proxy materials.

•We have adopted a policy on Board diversity, which prioritizes a Board comprised of individuals with diverse backgrounds. Our recent Board appointments reflect these considerations, and we believe that our new Board members have a diverse range of experiences and backgrounds which benefit our Board and our company.

•We have adopted a policy allowing for the "clawback" or recoupment of incentive compensation from certain officers in the event that the company is required to prepare a financial restatement, whether or not that restatement is due to fraud or other misconduct.

Codes of Business Ethics and Conduct

•We have adopted a Code of Ethics for Senior Financial Managers that applies to our Chief Executive Officer, Chief Financial Officer, Chief Accounting Officer and Controller.

•We also operate under an omnibus Code of Business Ethics and Conduct that applies to all directors, officers and employees and includes provisions ranging from restrictions on gifts to conflicts of interests.

•We have established a process for confidential and anonymous submissions by our employees, as well as submissions by other interested parties, regarding questionable accounting or auditing matters.

Our Audit Committee, Nominations and Governance Committee and Compensation Committee Charters, Code of Ethics for Senior Financial Officers, Corporate Governance Policies, Code of Business Ethics and Conduct, Second Amended and Restated Bylaws, Charter of the Commvault Systems Disclosure Committee, Insider Trading Policy and Policy of Fair Disclosure to Investors may be accessed on our website at www.commvault.com, from the Investor Relations tab. The contents of the website are not, however, a part of this proxy statement. In addition, we will make a copy of any of these documents available to any person, without charge, upon written request to Commvault Systems, Inc., 1 Commvault Way, Tinton Falls, New Jersey 07724, Attn: General Counsel. We intend to satisfy the disclosure requirements under Item 5.05 of Form 8-K and applicable Nasdaq rules regarding amendments to or waivers of our Code of Ethics for Senior Financial Officers and Corporate Governance Principles by posting this information on our website at www.commvault.com.

Majority Vote Standard and Resignation Policy in Director Elections

A majority vote standard, as described in our Bylaws, applies to the election of directors. In uncontested elections, if a quorum is present or represented, directors are elected by an affirmative vote of a majority of the votes cast.

If an incumbent director fails to receive the affirmative vote of a majority of votes cast in an uncontested election, such director shall promptly tender his or her irrevocable resignation to the Board of Directors, contingent upon acceptance by the

Board of Directors. Within 90 days after certification of the results of the stockholder vote, the Board of Directors shall act on the resignation, taking into account, among other things, a recommendation of the Company’s Nominations and Governance Committee. Within four business days after the Board of Directors formally decides whether or not to accept the resignation, the Company will publicly disclose that decision, together with an explanation of the process (and the reasons for rejecting the resignation, if applicable) in a press release, in Form 8-K or other filing with the Securities and Exchange Commission or by other public announcement. Any director whose resignation is being so considered may not participate in the Nominations and Governance Committee’s recommendation or the Board of Director’s decision on the resignation. If the resignations of a majority of the members of the Nominations and Governance Committee were to become effective as a result of this procedure, the remaining independent directors will appoint a special committee among themselves for the purpose of considering the resignations and recommending whether to accept or reject them.

The Board of Directors and Its Committees

General. Our Board of Directors currently comprises eleven members, ten of whom are independent and one of whom is the President and Chief Executive Officer of our company. After the 2021 Annual Meeting, the Board of Directors will decrease in size by one, resulting in ten members, nine of whom are independent and one of whom is the President and Chief Executive Officer of our company.

Our Board of Directors believes that our ratio of outside directors to inside directors represents a commitment to the independence of our Board of Directors and a focus on matters of importance to our stockholders. Specifically, our Board of Directors has determined that each of Nicholas Adamo, Martha H. Bejar, R. Todd Bradley, Keith Geeslin, YY Lee, Chuck Moran, Allison Pickens, Arlen Shenkman, Gary B. Smith and David F. Walker, who collectively constitute all of the outside directors, is “independent” as that term is defined under the applicable listing standards of Nasdaq. In making this determination for each director, the Nominations and Governance Committee, on behalf of our Board of Directors, considered the standards of independence set forth in the Nasdaq corporate governance listing standards and all relevant facts and circumstances to ascertain whether there was any relationship between a director and our company that, in the opinion of the Nominations and Governance Committee, would interfere with the exercise of independent judgment in carrying out the responsibilities of the director, or any material relationship with our company (either directly, or as a partner, stockholder or other officer of an organization that has a relationship with our company).

During the year ended March 31, 2021, our Board of Directors held eleven meetings. Due to the COVID-19 pandemic, all of these meetings were held virtually. All of our directors who served in the year ended March 31, 2021 attended more than 80% of the meetings of the Board of Directors and meetings of the committees of the Board on which the director served (excluding any such meetings that occurred prior to the date on which any individual became a director of our company or after the date on which any director resigned from the Board). The Board of Directors meets in executive session, without management, at every Board meeting. During fiscal year 2021, Mr. Adamo, as the independent Chairman of the Board, led these executive sessions and acted as primary spokesperson in communicating matters arising out of these sessions to our management.

Because we do not regularly schedule a Board of Directors meeting to coincide with our Annual Meeting, attendance at our Annual Meeting by our directors is encouraged but not required. All of our directors attended our 2020 Annual Meeting virtually or in person. The Board of Directors has three standing committees and one ad hoc committee. These committees have the responsibilities and authority described later in this section.

Board Leadership Structure. Commvault’s policy regarding its leadership structure is to adopt the practice which best serves our company’s needs at any particular time. Our Board has determined that the most effective leadership structure for our company at this time is for Mr. Nicholas Adamo, an independent director, to serve as Chairman of the Board while our President and Chief Executive Officer, Mr. Sanjay Mirchandani, focuses on his executive leadership role. Mr. Mirchandani is, however, a member of our Board, which ensures that Board members have a high level of access and visibility regarding Mr. Mirchandani's efforts, including his insights and perspectives regarding our company's operations, strategy and future performance. In his capacity as the independent Chairman of the Board, Mr. Adamo is responsible for presiding at Board meetings and executive sessions, and facilitating communication between Board members and the CEO and other members of senior management.

Board Oversight of Risk. Our company’s policies and procedures relating to risk assessment and risk management are overseen by its Board of Directors. A fundamental part of risk assessment and risk management is not only understanding the risks a company faces and what steps management is taking to manage those risks, but also understanding what level of risk is appropriate for our company. The involvement of the Board in setting our company’s business strategy is a key part of its assessment of management’s risk tolerance and what constitutes an appropriate level of risk for our company. The Board of

Directors considers risk management to varying degrees regularly at its meetings. The Board will adjust its practices with respect to risk oversight whenever it determines it needs to do so and will involve itself in particular areas or business circumstances where its proper exercise of oversight requires it.

While the Board of Directors has the ultimate oversight responsibility for the risk management process, various committees of the Board also have responsibility for risk assessment and risk management. The Audit Committee is required under its charter to inquire of management and the independent auditor concerning significant financial risks or exposures and to assess the steps management has taken to minimize such risks. The Audit Committee also oversees our company’s internal audit function, compliance matters and reviews with the General Counsel any legal matters, including litigation, that may have a material impact on our company’s financial statements, financial condition or results of operations. In addition, the Compensation Committee assesses compensation related risk and the Nominations and Governance Committee addresses management and governance risk, including through its oversight of the succession planning process. Each of these Board committees reports to the full Board with respect to its risk oversight functions.

At the management level, our company has appointed our General Counsel as our Chief Compliance Officer to oversee risk related matters, and we have established a disclosure committee to monitor our company’s compliance with its disclosure obligations under law and Nasdaq regulations and an executive review committee to monitor and approve certain transactions or other corporate matters that deviate from our company’s standard practices. The senior management of our company, including the Chief Compliance Officer, report to the Board or Board committees regarding risk issues, including those identified by the foregoing committees. In accordance with our company’s Corporate Governance Policies, the Board has complete and open access to any member of our company’s management and any of our company’s employees, as well as any outside advisors or independent advisors retained by the Board. In addition, our company’s Chief Financial Officer and General Counsel and Chief Compliance Officer are available at Board and committee meetings to answer questions relating to risk oversight. Further because the Chief Executive Officer is a director, he brings a unique perspective on our company’s risk profile and risk assessment to Board deliberations based on their day to day management responsibilities and knowledge about the company.

Audit Committee. The Audit Committee is responsible for the appointment of, compensation of and oversight over the work of our independent auditor. Additionally, the Audit Committee monitors the integrity of our financial statements, our independent auditor’s qualifications and independence, our compliance with legal and regulatory requirements and the performance of our internal audit function and independent auditor. The Audit Committee relies on the knowledge and expertise of our management, the internal auditors and the independent auditor in carrying out its oversight responsibilities. The members of the Audit Committee are Messrs. Walker (Chairman), Shenkman and Moran. The Audit Committee is comprised solely of directors who meet all of the independence standards for audit committee membership as set forth in the applicable listing standards of Nasdaq. The Board of Directors has determined that each of Messrs. Walker, Shenkman and Moran qualify as an “audit committee financial expert” as that term is defined in the SEC rules, and that each Audit Committee member has sufficient knowledge in financial and auditing matters to serve on the Audit Committee.

The Audit Committee operates under a written charter. The Audit Committee held five meetings in the year ended March 31, 2021. A report of the Audit Committee appears elsewhere in this proxy statement.

Compensation Committee. The Compensation Committee is responsible for overseeing our compensation and benefit plans, including all compensation arrangements for executive officers and directors. The members of the Compensation Committee are Mr. Geeslin (Chairman), Mr. Bradley and Ms. Lee. The Compensation Committee is comprised solely of outside directors who meet the independence standards for compensation and nominating committee members as set forth in Nasdaq listing standards.

Management assists the Compensation Committee in the performance of its duties. Each year, the Chief Executive Officer reviews the performance and compensation of each of the executive officers and makes recommendations to the Compensation Committee with respect to the executive officers’ compensation.

The Compensation Committee has the authority to engage its own independent advisors to assist in carrying out its responsibility. From time to time, consultants, including Compensia, also provide additional services at the request of our company. In fiscal year 2021, the Compensation Committee and management jointly engaged Compensia for services that included assistance and advice in the formulation of our company’s cash and equity compensation programs. The Compensation Committee reviewed the independence of Compensia under SEC and Nasdaq rules and concluded that its works had not raised any conflict of interest.

The Compensation Committee operates under a written charter. The Compensation Committee held three meetings and the Committee, or a sub-committee thereof, acted by unanimous written consent 12 times during fiscal year 2021. A report of the Compensation Committee appears elsewhere in this proxy statement. For a more detailed discussion of the Compensation Committee’s processes and procedures for considering and determining executive compensation, see “Executive Compensation - Compensation Discussion and Analysis.”

Nominations and Governance Committee. The Nominations and Governance Committee is responsible for identifying and recommending to our Board of Directors appropriate director nominee candidates and providing oversight with respect to corporate governance matters, including reviewing our corporate governance policy. The members of the Nominations and Governance Committee are Mr. Smith (Chairman), Ms. Bejar and Ms. Pickens. The Nominations and Governance Committee is comprised solely of outside directors who meet the independence standards for compensation and nominating committee members as set forth in Nasdaq listing standards.

The Nominations and Governance Committee is responsible for assessing the appropriate balance of experience, skills and characteristics required of our Board of Directors and for carrying out adequate due diligence with respect to prospective board members. The Nominations and Governance Committee will consider nominees that are recommended by members of the Board of Directors, management or other stockholders. Nominees for director shall be selected on the basis of diversity, depth and breadth of experience, integrity, ability to make independent analytical inquiries, understanding of our business environment, the willingness of the candidate to devote adequate time to board duties, the interplay of the candidate’s experience and skills with those of other board members, and the extent to which the candidate would be a desirable addition to our Board of Directors and any committees of the Board. In addition to the foregoing, the Nominations and Governance Committee may also take into account gender, race and ethnicity when recommending director nominees to the Board of Directors, with the objective of achieving a Board with diverse business, personal and educational backgrounds.

The Nominations and Governance Committee operates under a written charter. The Nominations and Governance Committee met five times in the year ended March 31, 2021.

Operating Committee. The general purpose of the Operating Committee is to oversee the Company’s budgeting processes and to work with Company management to establish margin targets and a balanced capital allocation policy for the Company. The members of the Operating Committee are Mr. Shenkman (Chairman), Mr. Bradley and Mr. Moran. The Operating Committee operates under a written charter. The Operating Committee was established in June 2020 and met six times in the year ended March 31, 2021.

Board Diversity. The Board of Directors has adopted a policy on Board diversity that is implemented by the Nominations and Governance Committee. This policy requires the Nominations and Governance Committee to consider diversity in professional experience, skills, broad-based business knowledge, understanding of our company’s business environment and training when recommending Director nominees to the Board, with the objective of achieving a board with diverse business and educational backgrounds. It is the goal of this policy for the Board to be composed of members with individual backgrounds that, when combined, provide a portfolio of experience and knowledge that will serve our company's governance and strategic needs. In accordance with our company’s Corporate Governance Guidelines, the Nominations and Governance Committee will consider the interplay of the director candidate’s experience and skills with those of other Board members, as well as the extent to which the candidate would be a desirable addition to the Board and any Committees of the Board. In addition to the foregoing, the Nominations and Governance Committee may also take into account gender, race and ethnicity when recommending director nominees to the Board of Directors, with the objective of achieving a Board with diverse business, personal and educational backgrounds. When recommending nominees for Director, the Nominations and Governance Committee does not discriminate against candidates based on gender, ethnicity, religion or national origin. Our company’s Board diversity policy specifies that the Nominations and Governance Committee will review the skills and attributes of Board members within the context of the current make-up of the full Board from time to time as the Nominations and Governance Committee deems appropriate. In connection with its deliberations with respect to Director nominations for our company’s August 2021 Annual Meeting, the Nominations and Governance Committee assessed that it effectively nominates candidates for Director in accordance with the above described standards, with the current Board being composed of individuals with finance, accounting, technology, management and international experience. See each nominee’s and director’s biography appearing earlier in this proxy statement for a description of the specific experiences that each such individual brings to the Board.

Stockholder Communications, Proposals and Director Nominations

Stockholder Communication Policy. Stockholders can contact our Board of Directors to provide comments, to report concerns, or to ask a question, at the following address.

Corporate Secretary

Commvault Systems, Inc.

1 Commvault Way

Tinton Falls, New Jersey 07724

You may submit your concern anonymously or confidentially by postal mail.

Communications are distributed to our Board of Directors, or to any individual directors as appropriate, depending on the facts and circumstances outlined in the communication. You may also communicate online with our Board of Directors as a group through the Investor Relations section of our website at www.commvault.com. The Secretary will forward all communications to the Board to the Chairman of the Audit Committee or the Chairman of the Nominations and Governance Committee, who will determine when it is appropriate to distribute such communications to other members of the Board or to management.

Clawback. In April 2021, we adopted a "clawback" policy which permits the Compensation Committee to seek to recover cash or equity incentive awards from certain executives in the event the company is required to prepare a financial restatement, regardless of whether or not the restatement was due to fraud or otherwise misconduct.

Proxy Access. In fiscal year 2019, we amended our Bylaws to include a “proxy access” provision by which eligible stockholders may nominate director candidates for inclusion in our proxy statement and proxy card. Proxy access may be used by a stockholder or a group of up to 20 stockholders who own at least 3% of our outstanding common stock continuously for at least three (3) years to nominate up to the greater of 20% of the Board of Directors or two directors. Proxy access is subject to certain limitations and requirements, including that we must receive a valid nomination notice with the requisite information and representations regarding both the nominating stockholders and the director candidates between 120 and 150 days before the anniversary of the date of mailing for the prior year’s proxy statement. The Board of Directors believes that this provision provides meaningful proxy access to stockholders while mitigating the risk of abuse and protecting the interests of all stockholders. The full text of this provision and each of its requirements appears in our Third Amended and Restated Bylaws, which is available as an exhibit to the Current Report on Form 8-K filed with the SEC on August 28, 2020.

Stockholder Proposals and Nominations. Stockholders who desire to (i) submit a proposal for consideration at a stockholders' meeting or (ii) nominate persons for election as directors at a stockholders' meeting without utilizing the proxy access provision noted above may do so by providing our company with written notice of the stockholder's intent to make such a proposal or nomination at least 90 days before the anniversary of the date of mailing of the notice for the prior year’s annual meeting. Each notice shall describe the proposal or nomination in sufficient detail for the proposal or nomination to be summarized on the agenda for the meeting. Among other things, the notice shall set forth:

• the name and address, as it appears on our books, of the stockholder who intends to make the proposal or nomination and the beneficial owner, if any, on whose behalf the nomination or proposal is made;

• a representation that the stockholder is a holder of record of our stock entitled to vote at such meeting and intends to appear in person or by proxy at the meeting to present such proposal or nomination;

• whether the stockholder plans to deliver or solicit proxies from other stockholders; and

• the class and number of our shares which are beneficially owned by the stockholder.

In the case of a stockholder nomination, additional information must be included in the notice to our company, such as (i) the name and address of any person to be nominated, (ii) a description of all arrangements or understandings between the stockholder and each nominee and any other person or persons (naming such person or persons) pursuant to which the nomination or nominations are to be made by the stockholder, (iii) such other information regarding such nominee proposed by such stockholder as would be required to be included in a proxy statement filed pursuant to Regulation 14A under the Securities Exchange Act of 1934, as amended, (iv) the consent of each nominee to serve as a Director of our company if so elected, and (v) such other information as is set forth in our Third Amended and Restated Bylaws, which are available as an exhibit to the Current Report on Form 8-K filed with the SEC on August 28, 2020.

Transactions with Related Persons

The Board of Directors recognizes that transactions between us and certain related persons present a heightened risk of conflicts of interest. It is our policy to have the Audit Committee review and approve, ratify or disapprove of proposed transactions or courses of dealings with respect to which executive officers or directors or members of their immediate families have an interest (including all transactions required to be disclosed pursuant to the SEC’s related persons disclosure requirements (“Related Persons Transactions”). The Audit Committee is to review such transaction based upon the rules of Nasdaq and upon our ethics and governance guidelines. There were no Related Persons Transactions during the year ended March 31, 2021.

We have a Code of Business Ethics and Conduct, a copy of which is posted on the Investor Relations portion of our web page at www.commvault.com, which applies to all of our employees. The Code, among other things, has a policy governing conflicts of interests generally and, in particular, prohibiting employment or other activities in certain other businesses, soliciting clients for any other purpose or relationships that may be perceived as impairing the ability of the individual or our company from performing his or its duties, as the case may be, in an impartial manner, and use of corporate property for improper personal gain. Any complaints or concerns require disclosure to the Vice President, General Counsel or Vice President, Chief People Officer and, if warranted, to the Audit Committee or Nominations and Governance Committee.

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

Management

The following table shows, as of May 31, 2021, the number of shares of our common stock, par value $.01 per share (the only class of voting securities outstanding), beneficially owned by: (1) each current director and nominee for director; (2) each named executive officer (defined below), and (3) all directors and current executive officers as a group. The number of shares of our common stock beneficially owned by a person includes shares of common stock issuable with respect to options, restricted stock units (including performance-based stock units), and convertible securities held by the person which are exercisable, convertible or will vest within 60 days. The percentage of our common stock beneficially owned by a person assumes that the person has exercised all options, vested in restricted stock units and converted all convertible securities, the person holds which are exercisable, convertible or will vest within 60 days, and that no other persons exercised any of their options, vested in any of their restricted stock units or converted any of their convertible securities.

Shares of Common Stock Owned

Percent of Common Stock Outstanding

Directors

Nicholas Adamo

7,877

Martha H. Bejar

7,877

R. Todd Bradley

—

Keith Geeslin (1)

61,526

Vivie “YY” Lee

6,765

Sanjay Mirchandani

101,699

Charles E. Moran

7,877

Allison Pickens

—

Arlen Shenkman

—

Gary B. Smith (2)

39,672

David F. Walker (3)

65,838

Named Executive Officers that are not Directors

Brian Carolan (4)

147,995

Riccardo Di Blasio

9,438

All directors and named executive officers as a group

456,564


*			Less than 1%.

(1)Includes options to acquire 24,500 shares of common stock which are exercisable within 60 days of May 31, 2021.

(2)Includes options to acquire 24,500 shares of common stock which are exercisable within 60 days of May 31, 2021.

(3)Includes options to acquire 17,000 shares of common stock which are exercisable within 60 days of May 31, 2021.

(4)Includes options to acquire 120,059 shares of common stock which are exercisable within 60 days of May 31, 2021.

Certain Other Stockholders

The following table sets forth, as of May 31, 2021 (except to the extent otherwise indicated), certain information regarding the persons known by us to be the beneficial owner of more than 5% of our outstanding common stock (the only class of voting securities outstanding).


Name and Address of Beneficial Owner	Shares of Common Stock Owned	Percent of Common Stock Outstanding
BlackRock, Inc. (1) 55 East 52nd Street New York, NY 10055	5,761,704	12.5	%
Vanguard Group, Inc. (2) PO Box 2600, V26 Valley Forge, PA 19482	4,373,172	9.5	%
Starboard Value LP (3) 777 Third Avenue, 18th Floor New York, NY 10017	4,348,023	9.4	%
AllianceBernstein L.P. (4) 1345 Avenue of the Americas New York, NY 10105	2,969,151	6.4	%
Renaissance Technologies LLC (5) 800 Third Avenue New York, New York 10022	2,294,287	5.0	%

(1)Based solely on a Form 13F filed on May 7, 2021 by BlackRock, Inc., except for Percent of Common Stock Outstanding.

(2)Based solely on a Form 13F filed on May 14, 2021 by Vanguard Group, Inc., except for Percent of Common Stock Outstanding.

(3)Based solely on a Form 13F filed on May 14, 2021, by Starboard Value LP, except for Percent of Common Stock Outstanding.

(4)Based solely on a Form 13F filed on May 6, 2021, by AllianceBernstein L.P., except for Percent of Common Stock Outstanding.

(5)Based solely on a Form 13F filed on May 13, 2021, by Renaissance Technologies LLC, except for Percent of Common Stock Outstanding.

EXECUTIVE COMPENSATION

Compensation Discussion and Analysis

This section discusses the compensation of the following individuals who served as executive officers during the fiscal year ended on March 31, 2021 (the “named executive officers”).


Sanjay Mirchandani			President and Chief Executive Officer
Brian Carolan			Vice President and Chief Financial Officer
Riccardo Di Blasio			Vice President and Chief Revenue Officer

Executive Summary

We believe that the skill, talent, judgment and dedication of our executive officers are critical factors affecting the long-term value of the company. Therefore, the philosophy and objectives in setting compensation policies for our named executive officers are to align pay with performance, while at the same time providing fair, reasonable and competitive compensation that will allow us to attract and retain superior executive talent. The Compensation Committee strongly believes that executive compensation should align our executive officers’ interests with those of our stockholders by rewarding achievement of specific annual, long-term and strategic goals by our company, with the ultimate objective of enhancing long-term stockholder value.

Consideration of Prior Stockholder Advisory Vote on Named Executive Officer Compensation

We conduct an annual non-binding stockholder advisory vote on the compensation of our named executive officers. In August 2020, our stockholders were provided with the opportunity to cast an advisory (non-binding) vote (a “say-on-pay” proposal) on the compensation of our named executive officers for fiscal 2020. Our stockholders approved this say-on-pay proposal, with more than 84% of the votes cast voting in favor of our executive compensation program.

In light of the 2020 say-on-pay vote, the Compensation Committee maintained a consistent general approach to our executive compensation program. This included a continued emphasis on pay-for-performance through the use of performance share awards that reward our executive officers only if they deliver value for our stockholders. Changes to our executive compensation program for fiscal 2021, including an increased emphasis on relative total stockholder return in the design of our long-term equity incentive awards, were primarily based on the ongoing market volatility and uncertainty during the COVID-19 pandemic.

The Compensation Committee will continue to consider input from our stockholders as reflected by the outcome of our annual say-on-pay vote when making compensation decisions for our executive officers.

Pay for Performance

We believe our executive compensation program has been designed to effectively pay for performance and is aligned with increasing the long-term value of the Company. We believe the charts below demonstrate the correlation between our performance and the compensation we paid over the past five fiscal years to our former Chairman, President and CEO, Mr. N. Robert Hammer, prior to his retirement in 2019, as well as the correlation between our performance and the executive compensation for our current CEO, Mr. Mirchandani, beginning in fiscal 2020.

1)Fiscal 2019 equity awards represent $12 million of modification expense for our former CEO's stock options and awards.

2)Reflects annual cash bonus compensation. See heading below labeled “Annual Bonus Plan” for more details.

3)Reflects the aggregate grant date fair value of stock option and restricted stock unit awards computed in accordance with FASB ASC Topic 718.

4)Please see the “Reconciliation of GAAP to Non-GAAP Financial Measures” section of this Compensation Discussion and Analysis for additional information about our non-GAAP financial measures.

5)Reflects the market price of our common stock per share on the last business day of the fiscal year.

Mix of Compensation Elements. Our fiscal 2021 executive compensation program consists of three principal elements: base salary, annual cash bonuses and long-term equity incentive awards. The chart below illustrates the mix of compensation elements for our CEO for fiscal 2021. Consistent with our pay for performance philosophy, the majority of our CEO's target total direct compensation in fiscal 2021 consisted of incentive awards, particularly long-term equity incentive awards. By emphasizing equity-based compensation in our CEO's compensation, the Compensation Committee believes we create a strong incentive for him to build sustainable long-term shareholder value.

(1) “Other Compensation” is primarily related to one-time relocation and transition costs.

Fiscal 2021 Financial Highlights. Fiscal 2021 revenues were $723.5 million, an increase of 8% from fiscal 2020. In addition, non-GAAP income from operations for fiscal 2021 was $137.5 million. The following table sets forth our financial results in fiscal 2021 in terms of total revenue, non-GAAP EBIT and non-GAAP diluted earnings per share, which the Compensation Committee takes into account when making compensation decisions.


	Fiscal 2021		Fiscal 2020		% Change 2019 to 2020
Revenue (in thousands)	$	723,472	$	670,885	8	%
Non-GAAP Income from Operations (EBIT) (in thousands)	$	137,464	$	87,492	57	%
Non-GAAP Diluted Earnings per Share (EPS) (1)	$	2.11	$	1.45	46	%
Stock Price (on last business day)	$	64.50	$	40.48	59	%

1)Please see the “Reconciliation of GAAP to Non-GAAP Financial Measures” section of this Compensation Discussion and Analysis for additional information about our non-GAAP financial measures.

Performance Measures

Typically, the performance metrics selected by the Compensation Committee for determination of the named executive officer’s cash bonus were revenue and non-GAAP EBIT because of its belief that they were the most relevant measures of our financial performance over time and are an effective measure of whether we are creating sustainable stockholder value. In fact, as part of our regular stockholder engagement, typically our stockholders focus on our revenue and non-GAAP EBIT performance as the best measurement of our performance. Further, in our public communications (including on earnings calls), our disclosures typically reference revenue and non-GAAP EBIT performance metrics, in addition to our GAAP performance metrics, as the primary means of how we evaluate our own performance. In other words, these metrics are most closely tied to how we manage the business.

Because the Compensation Committee believes that revenue and non-GAAP EBIT are the most relevant measures of the Company’s financial performance, it has chosen to use such metrics for the cash bonus for our named executive officers to further create sustainable stockholder value. In that regard, the Compensation Committee believes that it has established aggressive performance targets for each metric. During fiscal 2021, Mr. Mirchandani's attainment was 159% under the cash bonus plan.

The following tables show our Company’s recent performance against the measures used to determine the cash bonus, and for fiscal 2018 through fiscal 2020, applicable components of senior management’s equity compensation:


Performance Vesting RSUs / CEO Cash Bonus Financial Performance
Grant	Fiscal 2017	Fiscal 2018	Fiscal 2019	Fiscal 2020	Fiscal 2021 (1)

Revenue Achievement	102%	98%	61%	0%	N/A
Non-GAAP EBIT Achievement	110%	79%	139%	0%	N/A
Payout % Based on Scale	132%	53%	92%	0%	N/A

(1) Commvault did not grant any financial performance awards during fiscal 2021.

In fiscal 2016, the Compensation Committee expanded the performance measures to include Total Stockholder Return (“TSR”). A significant portion of the restricted stock units awarded to the CEO and other senior executives are contingent on the performance of our common stock as measured against the Russell 3000 index over the next three years.

Performance Vesting RSUs -
Total Shareholder Return (TSR)

Grant

May 2017

May 2018

February 2019(1) - New CEO

May 2019

May 2020

Actual Vest %:

First Annual Tranche

159%

N/A (2)

96%

105%

Second Annual Tranche

98%

71%

62%

95%

TBD

Third Annual Tranche

96%

62%

TBD

(1) This market-based award was granted to Mr. Mirchandani, our current CEO, as part of his new hire equity award.

(2) The first tranche of Mr. Mirchandani's awards vest upon the second anniversary of the grant date.

The Compensation Committee also considered the appropriate time horizon for the performance measures used in the compensation plan for our named executive officers. The Compensation Committee has historically relied on a combination of an annual performance period for our annual incentive plan and financial PSUs and relative TSR PSUs with one-, two- and three-year performance periods. In making its determination, our Compensation Committee took into consideration the Company’s use of multi-year vesting periods for equity awards (generally three years) to emphasize a longer-term perspective and the frequency of such awards, which historically and currently are awarded as part of executive compensation on a yearly basis. Due to the recurring nature of these grants on a yearly basis and their accompanying performance measures in the following year’s financial results, our Compensation Committee believes that multi-year performance measures tied to a single equity grant are less relevant. We believe that the multiple-year vesting requirements also serve an important retention purpose, as our executives must remain employed, absent a change in control or termination without cause, for the full vesting period in order to receive the benefits of these awards.

In May 2020, after taking into consideration the impact of the COVID-19 pandemic on our Company and the broader global macro environment, our Compensation Committee approved several changes to the design of our short-term and long-term incentive compensation plans for fiscal 2021. These changes included:

•Transitioning from annual to discrete quarterly performance periods for our annual incentive plan, with payout of any earned amounts remaining at the end of the fiscal year

•Modifying the revenue and non-GAAP EBIT payout curves for the annual incentive plan to reduce the threshold level of performance required for a payout and to increase the level of performance required for earning the maximum award

•Temporarily removing financial PSUs from the pay mix, and instead granting half of the target long-term incentive value in the form of time vesting RSUs and half in the form of relative TSR PSUs

In October 2020, after taking into consideration that the general business environment was stabilizing and given the increased visibility into our short-term performance the Compensation Committee approved the transition from quarterly to a discrete second half-year measurement period for our annual incentive plan. As a result, the remainder (50%) of the annual bonus target was based upon results against second half of the fiscal year.

These changes approved by the Compensation Committee were intended to balance the motivational and retention objectives of our compensation strategy, recognizing the significant challenges forecasting financial performance given the economic uncertainty created by the COVID-19 pandemic without sacrificing a strong pay-for-performance profile. In particular, the fiscal 2021 annual incentive plan remained tied to challenging revenue and non-GAAP EBIT performance objectives. In addition, relative TSR PSUs have historically been an important component of our long-term incentive strategy, providing a reward for sustained outperformance versus a market benchmark while requiring a strong financial performance over multi-year performance periods.

The Compensation Committee will continue to review the design of our incentive compensation programs in the context of the COVID-19 pandemic as well as the continuing maturity of our business, expectations of our stockholders and market practice among our peers.

Compensation Philosophy and Objectives

As a technology company, we operate in an extremely competitive and rapidly changing industry. The Compensation Committee’s philosophy and objectives in setting compensation policies for our executive officers are to align pay with performance, while at the same time providing fair, reasonable and competitive compensation that will allow us to attract and retain superior executive talent. The Compensation Committee strongly believes that executive compensation should align our executive officers’ interests with those of our stockholders by rewarding achievement of specific annual, long-term and strategic goals of our Company, with the ultimate objective of enhancing long-term stockholder value.

The specific goals that our current executive compensation program rewards are focused primarily on revenue growth and profitability, as the Compensation Committee believes that revenue growth and profitability are the most direct drivers of long-term stockholder value creation. To that end, the Compensation Committee believes that the executive compensation opportunities provided to our executive officers should include a mix of both cash and equity compensation that reward performance as measured against pre-established goals and objectives. As a result, the principal elements of our executive compensation are base salary, annual cash bonus, long-term equity incentive awards generally in the form of restricted stock units and performance-based stock units and certain post-employment compensation arrangements.

Our goal is to maintain an executive compensation program that will fairly compensate our executive officers, attract and retain qualified executive officers who are able to contribute to our long-term success, induce performance consistent with clearly defined corporate goals and align our executive officers’ long-term interests with those of our stockholders. Decisions with respect to the total compensation for our executive officers are based primarily upon an assessment of each individual’s performance and the potential to enhance long-term stockholder value. Often, judgment is relied upon, rather than rigid guidelines or formulas, in determining total compensation and the amount and mix of compensation for each executive officer. Factors affecting such judgment include performance compared to strategic goals established for the individual and our Company at the beginning of the year, the nature and scope of the executive officers' responsibilities, effectiveness in leading initiatives to achieve corporate goals and conducting all activities in a manner consistent with our core Company values.

Compensation Decision-Making

Role of Compensation Committee and Executive Officers in Compensation Decisions

The Compensation Committee is responsible for setting the compensation of our CEO and also reviewing and approving our CEO’s recommendations for the compensation of our other executive officers. Our CEO, Chief Financial Officer and Chief Human Resources Officer support the Compensation Committee in its work by providing information relating to our financial plans, performance assessments of our executive officers and other personnel-related data. In addition, the Compensation Committee has authority under its charter to engage outside advisors and experts for advice as appropriate.

Role of the Compensation Consultant

During fiscal 2021, our management and the Compensation Committee jointly engaged the services of Compensia, Inc. (“Compensia”), a national compensation consulting firm, as its compensation consultant to provide advice on matters relating to

the compensation of our executive officers and non-employee directors. Compensia provided the Compensation Committee with an analysis of industry sector competitive market data regarding executive compensation, information on compensation trends, and peer group and general market data, as well as assistance with the parameters used to determine the peer group, base salary, incentive plan design and the overall structure of our executive compensation program.

Compensia did not provide any services to us other than the consulting services to the Compensation Committee. The Compensation Committee regularly reviews the objectivity and independence of the advice provided by its compensation consultant on executive compensation matters. The Compensation Committee has evaluated Compensia’s engagement, and based on the six factors for assessing independence and identifying potential conflicts of interest that are set forth in the SEC rules and the NASDAQ Marketplace Rules, and such other factors as were deemed relevant under the circumstances, has determined that its relationship with Compensia and the work of Compensia on behalf of the Compensation Committee did not raise any conflict of interest.

Peer Analysis of Executive Compensation

During fiscal 2021, our management and the Compensation Committee jointly engaged Compensia to conduct a competitive market analysis for purposes of evaluating our base salaries, annual cash bonus opportunities and long-term equity incentive plan. The Compensation Committee and management used the data from this analysis to ensure that our executive compensation program was optimally structured to retain our highly experienced management team, to keep management focused during our expected period of growth, to motivate management to maximize stockholder value and to align our compensation practices with comparable technology industry companies.

In March 2020, the Compensation Committee conducted its annual review of the peer group used for executive compensation decision-making. In developing the peer group, the Compensation Committee targeting U.S.-headquartered companies within a similar industry and of a similar size as the Company. In particular, the Compensation Committee targeted direct competitors and other business application software companies. The peer companies were also evaluated based on the following financial criteria:

•Revenue: Target between approximately $350 million and $1.4 billion (0.5x to 2.0x the Company’s trailing 12-month revenue); and

•Market Capitalization: Target between $625 million and $6.3 billion (0.3x to 3.0x the Company’s market capitalization)

The companies included in the peer group were ACI Worldwide; Blackbaud; Bottomline Technologies; Box; Cloudera, Cornerstone OnDemand; FireEye; MicroStrategy; NetScout Systems; Nutanix; Paylocity Holding; Pegasystems; Progress Software; Pure Storage; SecureWorks; and Varonis Systems.

The Compensation Committee used this peer group for compensation decisions throughout fiscal 2021. The Company and the Compensation Committee review this peer group annually and make changes as needed to ensure its appropriateness for future decisions.

Components of Executive Compensation

The principal components of compensation for our executive officers are:

•Base salary;

•Annual cash bonus based on achievement of incentive targets;

•Long-term equity incentive awards; and

•Other benefits.

Base salary

We provide our executive officers with a base salary to compensate them for services rendered during the fiscal year. We believe that our base salaries are competitive, and the Compensation Committee generally compares our executive officer base salaries to the 30th - 80th percentile of the competitive market data in the analysis prepared by its compensation consultant. The Compensation Committee considers this range, allowing for base salaries to be set at the upper end of the range where appropriate, because executive compensation in the technology industry is intensely competitive and some of our competitors are larger organizations that compensate their executives at higher levels than organizations of our size. Due to the intense competition to both attract and retain talent, the Compensation Committee believes it is appropriate to target the base salaries of our executive officers at these levels.

Typically, base salary levels are reviewed annually as part of our performance review process as well as upon a promotion or other change in job responsibility. In addition to considering the competitive market analysis prepared by Compensia when setting base salaries for fiscal 2021, the Compensation Committee also considered the scope of and accountability associated with each executive officer’s position; the performance of each executive officer since the last annual performance review (in the case of Mr. Carolan); and the overall experience of each executive officer. The table below shows the fiscal 2020 and 2021 base salary rates, as applicable, for each named executive officer:


Name and Principal Position Held	Fiscal 2021 Salary($)	Fiscal 2020 Salary($)	Percentage Increase(%)
Sanjay Mirchandani President and Chief Executive Officer	550,000	500,000	10	%
Brian Carolan Vice President and Chief Financial Officer	410,000	397,000	3	%
Riccardo Di Blasio Vice President and Chief Revenue Office	445,000	430,000	3	%

In May 2020, after taking into consideration the impact of the COVID-19 pandemic on our Company and the broader global macro environment, our named executive officers participated in a 20% base pay reduction for the May, June and July pay periods. The amounts disclosed in the above table are exclusive of the 20% base pay reduction.

Annual Bonus Plan

During fiscal 2021, Messrs. Mirchandani, Carolan and Di Blasio each participated in the Commvault Annual Incentive Plan (the “Fiscal 2021 AIP”) pursuant to which participants were eligible to earn a cash bonus based on our achievement of pre-established corporate financial goals and, for Messrs. Carolan and Di Blasio, an evaluation of individual performance (management by objective or “MBOs”). Mr. Mirchandani’s fiscal 2021 target annual cash bonus opportunity was based entirely on our corporate financial performance, while Messrs. Carolan and Di Blasio’s target annual cash bonus opportunity was based 80% on our corporate financial performance and 20% on their individual MBOs.

Target Annual Cash Bonus Opportunities

In May 2020, the target cash bonus opportunities for Messrs. Mirchandani and Carolan for purposes of the Fiscal 2021 AIP were approved by the Compensation Committee after considering a competitive market analysis prepared by Compensia; the scope of and accountability associated with each executive officer’s position; the performance of each executive officer since his last annual performance review (in the case of Mr. Carolan); and the overall experience of each executive officer. Mr. Mirchandani was eligible for a target annual cash bonus opportunity equal to 100% of his $550,000 ending fiscal 2021 base salary. Mr. Carolan was eligible for a target annual cash bonus opportunity equal to 60% of his $410,000 ending fiscal 2021 base salary. Mr. Di Blasio was eligible for a target annual cash bonus opportunity equal to 80% of his 445,000 ending fiscal 2021 base salary. Potential cash bonus payments under the Fiscal 2021 AIP could range from zero to 200% of their target annual cash bonus opportunity. In addition, Messrs. Carolan and Di Blasio were eligible for an additional 10% of their quarterly target cash bonus opportunity for each quarter Commvault met both the non-GAAP EBIT and Revenue targets for that quarter.

Corporate Performance Measures

In May 2020, the Compensation Committee selected revenue and non-GAAP EBIT as the corporate performance metrics for purposes of the Fiscal 2021 AIP. These performance metrics were selected because the Compensation Committee believes that, at this stage of our development, our revenue growth and profitability are the most relevant measures of our Company’s financial performance and the measures most closely correlated to increasing stockholder value. In fact, in the course of our regular stockholder engagements, our stockholders typically focus on our revenue and non-GAAP EBIT performance as the best indicators of our overall performance. Further, in our public communications (including on earnings calls), our disclosures typically reference our revenue and non-GAAP EBIT performance results, in addition to our GAAP performance results, as measures of how we view our own performance. In other words, these metrics are most closely tied to how we manage our business.

For purposes of the Fiscal 2021 AIP, non-GAAP EBIT was calculated as described in the section entitled “Pay for Performance” above.

As approved in May 2020, payouts under the Fiscal 2021 AIP were tied to a mix of quarterly financial goals and individual MBOs. As set forth in the table below, overachievement on revenue and non-GAAP EBIT goals could generate a payout equal to 200% of target for the financial component of the plan. In addition, the Fiscal 2021 AIP included an opportunity for participating executive officers to earn an amount equal to 10% of their quarterly target annual cash bonus opportunity for performance at or above the target level for both the revenue and non-GAAP EBIT metrics. The cash bonus earned for each executive officer based on our quarterly results was paid after the end of the fiscal year. The Compensation Committee’s decision to measure performance on a quarterly basis for fiscal 2021 was influenced by the ongoing uncertainty facing our business and the broader market due to the COVID-19 pandemic.

For purposes of the Fiscal 2021 AIP, the Compensation Committee set the various performance levels for these corporate performance metrics and payout amounts for each performance level as follows:


Corporate Performance Metrics	First Quarter		Second Quarter
Revenue (in thousands)	$	154,500	$	165,700
Non-GAAP EBIT (in thousands)	$	10,200	$	21,300

For the portion of the annual cash bonus based on our revenue performance, no payout would be earned if our actual performance was less than 80% of the target for the applicable quarter. The maximum payout equal to 200% of the target cash bonus opportunity would be earned for performance at or greater than 120% of the target for the applicable quarter. For the portion of the annual cash bonus based on our non-GAAP EBIT performance, no payout would be earned if our actual performance was less than 70% of the target for the applicable quarter. The maximum payout equal to 200% of the target cash bonus opportunity would be earned for performance at or greater than 125% of the target for the applicable quarter. In the event of actual performance between the threshold and target, and target and maximum, performance levels, the payout percentage was to be calculated between each designated segment on a linear basis. The payout curves for the Fiscal 2021 AIP were modified from the prior year, with a less punitive downside and an increased overperformance required for maximum payout. The Compensation Committee approved this flattening of the payout curve to account for the difficulty forecasting financial performance in the midst of the COVID-19 pandemic.

The Compensation Committee believed that our revenue and profitability performance goals were aggressive and not easy to achieve because they were based on growth objectives that were higher than the industry average. Consequently, the target levels for these metrics were only achievable as the result of performance that exceeded industry averages.

The Compensation Committee weighted the corporate performance metrics differently for our CEO and other executive officers. The weighting of each performance metric as a component of their target annual cash bonus opportunities was as follows:


	Revenue	Non-GAAP EBIT	MBOs
Mr. Mirchandani	50%	50%	N/A
Mr. Carolan	40%	40%	20%
Mr. Di Blasio	40%	40%	20%

In October 2020, after taking into consideration that the general business environment was stabilizing and given the increased visibility into our short-term performance, the Compensation Committee determined to replace the separate revenue and non-GAAP EBIT levels for the third and fourth fiscal quarters with goals for the combined second half of the fiscal year. The revised performance levels for these performance metrics and payout amounts for each performance level were as follows:


Corporate Performance Metrics	Second Half AIP Goals
Revenue (in thousands)	$	351,100
Non-GAAP EBIT (in thousands)	$	65,000

Like our full fiscal year performance levels, the Compensation Committee believed that our revenue and profitability performance goals for the second half of fiscal 2021 were aggressive and would not be easy to achieve.

Fiscal 2021 Annual Cash Bonus Plan Decisions

In May 2021, taking into consideration our results for the first and second fiscal quarters as well as the second half of the year, the Compensation Committee determined that our achievement for the revenue and non-GAAP EBIT portions of the Fiscal 2021 AIP resulted in a corporate performance factor equal to 159.05% of target.


	Achievement (in millions)		Target (in millions)		Achievement vs. Target		Payout Factor		Weighting		Weighted Payout
Q1 Revenue	$	173.0	$	154.4	112.0	%	159.9	%	12.5	%	20.00	%
Q1 EBIT	$	32.5	$	10.2	318.6	%	200.0	%	12.5	%	25.00	%
Q2 Revenue	$	171.1	$	166.4	102.8	%	114.0	%	12.5	%	14.25	%
Q2 EBIT	$	28.9	$	24.0	120.4	%	181.6	%	12.5	%	22.70	%
H2 Revenue	$	379.3	$	351.1	108.0	%	140.0	%	25.0	%	35.00	%
H2 EBIT	$	76.1	$	65.0	117.1	%	168.4	%	25.0	%	42.10	%
Total									100.0	%	159.05	%

The corporate performance factor accounted for 100% of the target annual cash bonus opportunity for Mr. Mirchandani. For our other NEOs, the corporate performance factor determined 80% of their payouts under the Fiscal 2021 AIP with the remaining 20% of their target annual cash bonus opportunity tied to the achievement of pre-established MBOs. For Mr. Carolan, his actual bonus earned reflects payment at 100% of target for the MBO portion of the Fiscal 2021 AIP, and for Mr. Di Blasio, his actual bonus earned reflects payment at 125% of target for the MBO portion of the Fiscal 2021 AIP. In addition, the actual bonuses earned by Messrs. Carolan and Di Blasio reflect an additional 10% of their target annual cash bonus opportunities earned based on our actual achievement for both revenue and non-GAAP EBIT exceeding target for the first two quarters of the year and the second half of the year.


	Target Annual Cash Bonus Opportunity	Percentage of Target Bonus Earned	Actual Bonus Earned
Mr. Mirchandani	$550,000	159.05%	$874,706
Mr. Carolan	$246,000	157.23%	$386,786
Mr. Di Blasio	$356,000	162.23%	$577,539

Long-Term Equity Incentive Awards

We currently provide long-term equity incentive awards pursuant to our 2016 Incentive Plan, which is designed to provide our employees, including our executive officers, the non-employee members of our Board of Directors and other service providers with appropriate incentives to perform in a superior manner and to achieve long-range goals and to align the interests of plan participants with those of our stockholders. The 2016 Incentive Plan permits the grant of incentive stock options, non-qualified stock options, stock appreciation rights, full value share awards (including restricted stock awards, restricted stock unit (“RSU”) awards (including performance-based restricted stock unit (“PSU”) awards), and performance stock awards) based on, or related to, shares of our common stock and cash incentive awards which are contingent on performance.

We account for the equity awards granted to all of our employees under ASC 718, Compensation - Stock Compensation, which requires us to estimate and record compensation expense over the service period of the award. All equity awards to our employees, including our executive officers, and to the non-employee members of our Board of Directors have been granted and reflected in our consolidated financial statements, based upon the applicable accounting guidance, at fair value on the grant date.

Generally, a significant equity award is granted to a new executive officer when that individual officer commences employment. The size of each equity award is set at a level that we believe is appropriate to create a meaningful opportunity for stock ownership based upon our equity award grant guidelines, the individual’s position with us and the individual’s potential for future responsibility and promotion. The relative weight given to each of these factors varies from individual to individual and all equity awards granted to our executive officers are approved by the Compensation Committee.

Thereafter, when follow-on equity awards are granted, the Compensation Committee evaluates each executive officer’s performance during the prior fiscal year, as well as our overall corporate financial performance, and such performance is taken into account when determining the magnitude of these equity awards. The Compensation Committee generally grants follow-on equity awards on an annual basis. The terms of the award and the number of shares granted are established to ensure a meaningful incentive to remain an employee of our Company. The long-term equity incentive awards granted to our executive officers during fiscal 2021 were granted in May 2020.

In preparation to grant these equity awards in May 2020, the Compensation Committee reviewed a competitive market analysis prepared by Compensia to obtain comparable market data primarily related to the grant date fair value of the equity awards granted to similarly-situated executives at the companies in the our compensation peer group.

In May 2020, the Compensation Committee granted our named executive officers annual equity awards comprised of 50% RSU awards with time-based vesting and 50% of PSU awards, subject to the following terms and conditions:


Time-Based Vesting RSU awards			Vest 33% on the first anniversary of the grant date and an additional 8.375% each fiscal quarter thereafter until fully vested.

Relative TSR PSU awards			Recipient may earn up to 200% of target award based on our TSR performance relative to the components of the Russell 3000 Index over equally weighted 1-, 2- and 3-year performance periods. Earned shares, if any, vest at the end of each applicable performance period.

The equity award mix granted to our named executive officers was modified from fiscal 2020 to replace financial PSU awards, which were earned based on our revenue and non-GAAP EBIT performance with the Relative TSR PSU awards. The Compensation Committee approved this change as a result of the ongoing uncertainty facing our business due to the COVID-19 pandemic. The Compensation Committee believed that the use of Relative TSR PSU awards in fiscal 2021 maintained our emphasis on performance-based equity awards as the primary component of our long-term equity incentive compensation program while retaining a strong pay-for-performance philosophy during an unprecedented period of extreme market and macroeconomic volatility.

Taking into consideration market data and the performance of individual executive officers, the Compensation Committee determined that the aggregate economic value of the equity awards granted to our named executive officers should be $6.25 million in the case of Mr. Mirchandani, $2.058 million in the case of Mr. Carolan, and $1.51 million in the case of Mr. Di Blasio. In determining the number of shares granted to each named executive officer, the Compensation Committee converted the target value of each award to a number of shares based on the 5-trading day average closing price of our common stock prior to the grant date. Fifty percent of the target award value of each named executive officer’s award was granted in the form of time-based RSU awards, with the remaining 50% of the target award value granted in the form of the Relative TSR PSU awards. Based on the competitive market analysis prepared by Compensia, this weighting exceeded the average weighting of time-based and performance-based awards of the companies in our compensation peer group. The number of shares of our common stock granted to our named executive officers as time-based RSU awards and Relative TSR PSU awards for fiscal 2021 was as follows:


	Time-based Restricted Stock Unit Awards (number of shares)	Relative TSR PSU Awards (Target number of shares)
Mr. Mirchandani	87,364	87,364
Mr. Carolan	28,768	28,768
Mr. Di Blasio	21,108	21,108

Relative TSR PSU Awards

The Relative TSR PSU awards granted to our named executive officers in fiscal 2021 are to be earned and vest based on our TSR measured relative to the components of the Russell 3000 Index over three equally-weighted overlapping one-year, two-year and three-year performance periods. The payout schedule for the Relative TSR PSU awards is as follows:


Relative TSR Percentile Rank			% of Target PSU Earned
< 25th			0%
25th			50%
50th			100%
75th			150%
85th			200% (max)
Scale is linear between shown points and units earned cannot exceed 100% of target if the Company’s stock price declines.

Earned shares for each performance period, if any, will vest following certification of our results by the Compensation Committee. For the one-year performance period ending May 21, 2021, our total stockholder return of 70.17% was positioned at the 53rd percentile of the benchmark. As a result, the Compensation Committee certified a payout equal to 105% of target for the portion of the Relative TSR PSU award allocated to the one-year performance period.

Other Benefits

Our executive officers participate in health and welfare benefit programs that are substantially the same as all other eligible employees of our Company. These benefits include a 50% matching contribution on the first 4% of eligible pay contributed to our 401(k) plan.

Our executive officers are also eligible to participate in our Employee Stock Purchase Plan (the “ESPP”). The ESPP is a stockholder approved plan under which substantially all employees may purchase the Company’s common stock through payroll deductions at a price equal to 85% of the lower of the fair market values of the common stock as of the beginning or the end of six-month offering periods. An employee’s payroll deductions under the ESPP are limited to 10% of the employee’s salary and employees may not purchase more than $25,000 of common stock during any calendar year. Messrs. Mirchandani and Carolan participated in the ESPP in fiscal 2021 and received nominal benefits related to the 15% discount on the purchase price of the Company’s common stock. Mr. Di Blasio did not participate in the ESPP during fiscal 2021.

Change in Control Severance Agreements

We have entered into change-in-control severance agreements with each of our named executive officers. We entered into these arrangements to acknowledge the respective individual’s importance to us and our stockholders and to attempt to avoid the distraction and loss of key management personnel that may occur in connection with rumored or actual fundamental corporate organizational changes. As more fully described in the section entitled “Employment Agreements” below, these agreements entitle our named executive officers to payments and benefits only if his employment is terminated without “cause,” or by him as a result of a “good reason,” within the two-year period following a change in control of the Company. The Compensation Committee believes that this “double-trigger” structure provides an appropriate balance between the corporate objectives described above and the potential compensation payable upon a change of control of the Company.

Stock Ownership Guidelines

We currently require our independent directors and our CEO to acquire an equity ownership interest in our common stock within five years of the date of our adoption of the policy (or five years from the date that they first became a director or CEO, as applicable) that, in the case of the independent directors is equal to five times their base annual retainer, and in the case of our CEO is equal to five times his current annual base salary. The Compensation Committee is satisfied that this level of equity ownership among our independent directors and our CEO, and the equity ownership interests of our other directors and executive officers, is sufficient to provide motivation and to align these groups' interests with those of our stockholders.

Hedging Prohibition

We have a policy that prohibits our employees (including officers) and the members of our Board of Directors from engaging in any hedging transactions, which are transactions that allow the holder to continue to own share of our common stock but without the full risks and rewards of ownership. When the holder no longer has the full risks and/or rewards of ownership, they may no longer have the same objectives as the Company and our other stockholders, and therefore such transactions are prohibited.

Compensation Recovery and Financial Restatements

In April 2021, we adopted a "clawback" policy which permits the Compensation Committee to seek to recover cash or equity incentive awards from certain senior leaders, including our chief executive officer, chief financial officer and chief accounting officer, in the event the Company is required to prepare a financial restatement, regardless of whether or not the restatement was due to fraud or otherwise misconduct.

Deductibility of Executive Compensation

Section 162(m) of the Code imposes a $1 million limit on the amount that a publicly-traded corporation may deduct for compensation paid to each of the company’s principal executive officer, principal financial officer and the company’s three next most highly compensated executive officers (“covered employees”). The Tax Reform and Jobs Act of 2017 (the “Act”) eliminated the ability of companies to rely on the “performance-based” compensation exception under Section 162(m) and extended the application of Section 162(m) to compensation payable to any person who was ever a covered employee at any time after 2016 (including compensation payable after termination of employment). As a result, beginning in fiscal 2018, we were no longer able to take a deduction for any compensation paid to our covered employees in excess of $1 million unless the compensation originally qualified for the “performance-based” compensation exception and qualifies for transition relief applicable to certain arrangements in place on November 2, 2017 and that have not subsequently been materially modified. The application of the transition rule will be of limited future value with respect to the preservation of deductions for compensation payable to covered employees in excess of the Section 162(m) limits.

Reconciliation of GAAP to Non-GAAP Financial Measures

The following table provides a reconciliation of our reported GAAP results to the non-GAAP financial measures discussed above and used in certain of our named executive officers fiscal 2021 compensation arrangements. The following results are based on the accounting principles that were used to prepare the fiscal 2021 consolidated financial statements included in our Annual Report on Form 10-K for the year ended March 31, 2021.


	Fiscal Year Ended March 31,
	2021		2020
	(in thousands except per share data)
Non-GAAP financial measures and reconciliation:
GAAP income (loss) from operations	$	(22,263)	$	(17,508)
Noncash stock-based compensation (1)	82,086		64,135
FICA and related payroll tax expense related to equity compensation (2)	2,196		1,571
Restructuring (3)	23,471		21,348
Hedvig deferred payments (4)	5,624		2,812
Amortization of intangible assets (5)	5,650		5,650
Impairment of intangible assets (6)	40,700		—
Net change in contingent consideration (7)	—		(3,783)
Non-routine shareholder matter (8)	—		7,628
Acquisition costs (9)	—		5,639
Non-GAAP income from operations	$	137,464	$	87,492
GAAP net income (loss)	$	(30,954)	$	(5,645)
Noncash stock-based compensation (1)	82,086		64,135
FICA and related payroll tax expense related to equity compensation (2)	2,196		1,571
Restructuring (3)	23,471		21,348
Hedvig deferred payments (4)	5,624		2,812
Amortization of intangible assets (5)	5,650		5,650
Impairment of intangible assets (6)	40,700		—
Net change in contingent consideration (7)	—		(3,783)
Non-routine shareholder matter (8)	—		7,628
Acquisition costs (9)	—		5,639
Non-GAAP provision for income taxes adjustment (10)	(27,674)		(31,863)
Non-GAAP net income	$	101,099	$	67,492
Diluted weighted average shares outstanding	47,803		46,440
Non-GAAP diluted net income per share	2.11		1.45

(1)Represents noncash stock-based compensation charges associated with stock options, restricted stock units granted and our Employee Stock Purchase Plan.

(2)Represents additional FICA and related payroll tax expenses incurred by Commvault when employees exercise in the money stock options or vest in restricted stock awards.

(3)In recent fiscal years, Commvault initiated restructuring plans to increase efficiency in its sales, marketing and distribution functions as well as reduce costs across all functional areas. These restructuring charges relate primarily to severance and related costs associated with headcount reductions, as well as the closure of offices. Restructuring includes stock-based compensation related to modifications of awards granted to former employees. Management believes, when used as a supplement to GAAP results, that the exclusion of these charges will help investors and financial analysts understand Commvault's operating results and underlying operational trends as compared to prior periods.

(4)In connection with the acquisition of Hedvig Inc., certain Hedvig shareholders will receive cash payments for the 30 months following the date of acquisition, subject to their continued employment with Commvault. While these

payments are proportionate to these shareholders' ownership of Hedvig, under GAAP they are accounted for as compensation expense within Research and development expenses over the course of the 30 month service period. Management believes, when used as a supplement to GAAP results, that the exclusion of these non-routine expenses will help investors and financial analysts understand Commvault's operating results and underlying operational trends as compared to prior periods.

(5)Represents noncash amortization of intangible assets.

(6)In the second quarter of fiscal 2021, Commvault recorded an impairment charge of its acquired intangible assets. These non-cash charges are not representative of ongoing costs to the business and are not expected to recur. As a result, these charges are being excluded to provide investors with a more comparable measure of costs associated with ongoing operations.

(7)Represents the change in fair value of the contingent consideration associated with the acquisition of Hedvig.

(8)During the second quarter of fiscal 2020, Commvault incurred costs related to the acquisition of Hedvig, Inc. Management believes, when used as a supplement to GAAP results, that the exclusion of these costs will help investors and financial analysts understand Commvault's operating results and underlying operational trends as compared to other periods.

(9)During fiscal 2020, Commvault incurred costs related to a non-routine shareholder matter. The costs are for professional fees related to the settlement agreement with the shareholder and consulting fees incurred with the operational review which was agreed to as part of the settlement. Management believes, when used as a supplement to GAAP results, that the exclusion of these costs will better help investors and financial analysts understand Commvault's operating results and underlying operational trends as compared to prior periods.

(10)The provision for income taxes is adjusted to reflect Commvault’s estimated non-GAAP effective tax rate of approximately 27% in fiscal years 2021 and 2020.

Fiscal 2021 Summary Compensation Table

The following table summarizes the compensation earned by both individuals who served as our Principal Executive Officer during the fiscal year ended March 31, 2021, our Principal Financial Officer and our other most highly paid executive officer whose total compensation in fiscal 2021 exceeded $100,000. We refer to these individuals as our “named executive officers”.


Name and Principal Position	Year	Salary($)	Bonus($)		Stock Awards($)(3)	Non-Equity Incentive Plan Compensation($)(4)	All Other Compensation($)		Total ($)
Sanjay Mirchandani	2021	505,769	—		6,336,511	874,706	288,000	(5)	8,004,986
President and Chief Executive Officer	2020	500,000	250,000	(1)	4,999,745	—	347,771		6,097,515
	2019	76,923	250,000	(1)	11,423,757	—	167,337		11,918,016
Brian Carolan	2021	384,123	—		2,086,543	386,786	5,455	(6)	2,862,907
Vice President and	2020	397,000	—		2,017,884	166,740	10,190		2,591,814
Chief Financial Officer	2019	397,000	—		1,874,064	238,000	18,039		2,527,103
Riccardo Di Blasio	2021	416,654	—		1,530,963	577,539	5,438	(7)	2,530,594
Vice President and	2020	380,385	100,000	(2)	1,459,584	231,000	5,292		2,176,259
Chief Revenue Officer

(1)These amounts represent the guaranteed bonus due to Mr. Mirchandani as described in his February 2019 employment agreement, limited to fiscal years 2019 and 2020.

(2)This amount represents Mr. Di Blasio's one-time cash sign-on bonus.

(3)The amounts reported in this column represent the grant date fair value of the restricted stock unit awards and performance stock unit awards granted during the fiscal year indicated as computed in accordance with FASB ASC Topic 718. The amounts shown disregard estimated forfeitures related to service-based vesting conditions and assume performance stock units at target (100%). If the performance stock unit awards are achieved at the maximum (200%), this would result in stock award values of $9,548,012; $3,144,055 and $2,306,893 for Mr. Mirchandani, Mr. Carolan and Mr. Di Blasio, respectively. See Note 10 of our consolidated financial statements contained in our Annual Report on Form 10-K for the year ended March 31, 2021 for a discussion of all assumptions made by us in determining the grant date fair value of such awards.

(4)The amounts reported in this column consist of cash bonuses earned in fiscal 2021 and are more fully described above under the heading “Annual Bonus Plan” in the Compensation Discussion and Analysis.

(5)Mr. Mirchandani's other annual compensation in fiscal 2021 included a monthly housing and travel allowance of $15,000 per month for a total of $180,000 for the fiscal year, relocation reimbursement of $102,454 and $5,546 related to his 401(k) plan company matching contributions.

(6)Mr. Carolan's other annual compensation in fiscal 2021 included his 401(k) plan company matching contributions of $5,455.

(7)Mr. Di Blasio's other annual compensation in fiscal 2021 included his 401(k) plan company matching contributions of $5,438.

Fiscal 2021 Grants of Plan Based Awards Table

The following table sets forth information as to grants of plan-based awards to our named executive officers in fiscal 2021:


		Estimated future payouts under non-equity incentive plan awards ($)			Estimated future payouts under equity incentive plan awards (#)			All Other Stock Awards: Number of Shares of Stock or Units (#)(7)	Grant Date Fair Value of Stock and Option Awards($)(8)
Name	Grant & Approval Date	Threshold (1)	Target (2)	Maximum (3)	Threshold (4)	Target (5)	Maximum (6)
Sanjay Mirchandani	—	275,000	550,000	1,100,000	—	—	—	—	—
	05/22/20	—	—	—	—	—	—	87,364	3,125,010
	05/22/20	—	—	—	43,682	87,364	174,728	—	3,211,501
Brian Carolan		123,000	246,000	492,000	—	—	—	—	—
	05/22/20	—	—	—	—	—	—	28,768	1,029,031
	05/22/20	—	—	—	14,384	28,768	57,536	—	1,057,512
Riccardo Di Blasio		178,000	356,000	712,000	—	—	—	—	—
	05/22/20	—	—	—	—	—	—	21,108	755,033
	05/22/20	—	—	—	10,554	21,108	42,216		775,930

(1)Represents the threshold amount with respect to each applicable metric under the fiscal 2021 Annual Bonus Plan for each named executive officer. Actual total pay-outs may be less than the threshold amounts above if individual thresholds are not met. See “Annual Bonus Plan” above for more information on the plans and performance objectives for each of our named executive officers.

(2)Represents the total target amount with respect to each applicable metric under the fiscal 2021 Annual Bonus Plan for each named executive officer. See “Annual Bonus Plan” above for more information on the plans and performance objectives for each of our named executive officers.

(3)Represents the maximum amount with respect to each applicable metric under the fiscal 2021 Annual Bonus Plan for each named executive officer. See “Annual Bonus Plan” above for more information on the plans and performance objectives for each of our named executive officers.

(4)Represents the threshold amount for performance stock awards granted, or 50% of the target amount, for each named executive officer under our 2016 Incentive Plan. If the threshold conditions for these awards are not met, the award value will be zero. See “Long-Term Equity Incentive Awards” above for more information on the plan and the related performance objectives.

(5)Represents the target amount for performance stock awards granted for each named executive officer under our 2016 Incentive Plan. See “Long-Term Equity Incentive Awards” above for more information on the plan and the related performance objectives.

(6)Represents the maximum amount for performance stock awards granted, or 200% of the target amount, for each named executive officer under our 2016 Incentive Plan. See “Long-Term Equity Incentive Awards” above for more information on the plan and the related performance objectives.

(7)Amounts in this column reflect time-based restricted stock unit awards granted during fiscal 2021 to our named executive officers under our 2016 Incentive Plan.

(8)The amounts reported in this column represent the grant date fair value of the restricted stock unit awards and performance stock unit awards (shown at target) granted during the fiscal year indicated as computed in accordance with FASB ASC Topic 718. The amounts shown disregard estimated forfeitures related to service-based vesting conditions. See Note 10 of our consolidated financial statements contained in our Annual Report on Form 10-K for the year ended March 31, 2021 for a discussion of all assumptions made by us in determining the grant date fair value of such awards.

Fiscal 2021 Outstanding Equity Awards at Fiscal Year End Table

The following table reflects all outstanding equity awards held by our named executive officers as of March 31, 2021:


		Option Awards			Stock Awards
Name	Grant Date (1)	Number of Securities Underlying Unexercised Options (Exercisable) (#)	Option Exercise Price($)	Option Expiration Date	Number of Shares or Units of Stock That Have Not Vested(#)(2)	Market Value of Unearned Shares or Units of Stock That Have Not Vested($)	Equity Incentive Plan Awards: Number of Unearned Shares, Units or Other Rights That Have Not Vested(#)(3)	Equity Incentive Plan Awards: Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested($)
Sanjay	02/04/19	—	—	—	15,489	999,041	23,233	1,498,529
Mirchandani	05/15/19	—	—	—	14,232	917,964	22,100	1,425,450
	05/22/20	—	—	—	87,364	5,634,978	87,364	5,634,978
Brian	10/12/12	35,256	56.57	10/12/22	—	—	—	—
Carolan	03/14/13	12,000	77.57	03/14/23	—	—	—	—
	10/14/13	45,132	87.20	10/14/23	—	—	—	—
	10/14/14	45,299	45.44	10/14/24	—	—	—	—
	05/15/18	—	—	—	1,580	101,910	2,162	139,449
	05/15/19	—	—	—	8,037	518,387	6,027	388,742
	11/15/19	—	—	—	875	56,438	—	—
	05/22/20	—	—	—	28,768	1,855,536	28,768	1,855,536
Riccardo	05/15/19	—	—	—	5,232	337,464	4,185	269,933
Di Blasio	11/15/19	—	—	—	609	39,281	—	—
	05/22/20	—	—	—	21,108	1,361,466	21,108	1,361,466

(1)Unless otherwise indicated, all restricted stock unit awards granted to our named executive officers vest over three years with 33.3% vesting on the first anniversary of the grant date and 8.375% vesting quarterly thereafter. Financial performance awards follow the same vesting schedule as described above, at their respective achievement rates. Total shareholder awards (“TSR”) vest equally on an annual basis over three years. The vesting commencement date for all restricted stock unit awards and performance stock unit awards is the grant date.

(2)Time-based awards include time-vesting restricted stock unit awards and financial performance stock unit awards at the rate achieved for the respective fiscal year. The May 2018 financial performance stock unit award achieved at 92%, the May 2019 award achieved at 0% and the November 2019 award achieved at 46%. There were no financial performance stock unit awards granted in fiscal 2021. The value is computed based on the number of achieved unvested shares multiplied by the closing market price of our common stock at the end of fiscal 2021. The actual value (if any) to be realized by the named executive officer depends on whether the shares vest and the future performance of our common stock. On March 31, 2021, the closing price of our common stock was $64.50 per share. See “Long-Term Equity Incentive Awards” above for more information on the plan and the related performance objectives.

(3)Performance-based awards include Relative TSR performance stock unit awards at the March 31, 2021 payout rate based on the TSR measured relative to the components of the Russell 3000 Index. The May 2018, February 2019, May 2019 and May 2020 awards are calculated at an estimated 100% payout (target). The value is computed based on the number of achieved unvested shares multiplied by the closing market price of our common stock at the end of fiscal 2021. The actual value (if any) to be realized by the named executive officer depends on whether the shares vest and the future performance of our common stock. On March 31, 2021, the closing price of our common stock was $64.50 per share. See “Long-Term Equity Incentive Awards” above for more information on the plan and the related performance objectives.

Fiscal 2021 Stock Vested Table

The following table sets forth information on the number and value of restricted stock units vested during fiscal 2021 for our named executive officers.


	Stock Awards
Name	Number of Shares Acquired on Vesting(#)	Value Realized on Vesting($) (1)
Sanjay Mirchandani	91,403	4,406,843
Brian Carolan	26,555	1,126,119
Riccardo Di Blasio	11,773	505,741

(1)The value realized on the vesting of the restricted stock unit awards is based on the market price of our common stock on the day that the underlying restricted stock units vested. See “Long-Term Equity Incentive Awards” above for more information on the plan and the related performance objectives.

Pension Benefits

None of our named executive officers during fiscal 2021 participated in or had account balances in qualified or non-qualified defined benefit plans sponsored by us.

Nonqualified Deferred Compensation

None of our named executive officers during fiscal 2021 participated in or had account balances in non-qualified defined contribution plans maintained by us.

Employment Agreements

In January 2019, we entered into an employment agreement with Mr. Mirchandani upon his appointment as President and Chief Executive Officer. The agreement provides that Mr. Mirchandani's annual base salary shall be subject to annual review by our Board of Directors. The agreement also provides that Mr. Mirchandani shall be eligible for an annual cash bonus and that he shall be entitled to participate in the employee benefits plans in which our other executives may participate. The agreement further provides that Mr. Mirchandani is entitled to certain equity awards, including annual target equity awards and a one-time new hire award. If we terminate Mr. Mirchandani's employment without cause or if Mr. Mirchandani terminates his employment for good reason, the agreement provides that Mr. Mirchandani will be entitled to receive a lump sum payment equal to (i) 12 months of his then-current base salary and (ii) his annual cash target bonus for the year in which termination of employment occurs. We will also be required to continue paying the premiums for Mr. Mirchandani's and his dependents’ health insurance coverage for a period of 18 months. In addition, Mr. Mirchandani will be entitled to any other amounts or benefits previously accrued under our then applicable employee benefit plans, incentive plans or programs. Furthermore, the vesting of all stock options and stock awards held by Mr. Mirchandani shall immediately accelerate as for one year of additional vesting and any stock awards with performance conditions not yet determined shall be deemed earned at 100% of target. If we terminate Mr. Mirchandani's employment by reason of death or disability, he will be entitled to any compensation earned but not yet paid, any stock options or awards shall immediately vest, and any stock awards with performance conditions not yet determined shall be deemed earned at 100% of target. The agreement also provides that, during his term of employment with us and for a period of one year following any termination of employment with us, Mr. Mirchandani may not participate, directly or indirectly, in any capacity whatsoever, within the United States, in a business in competition with us, other than beneficial ownership of up to one percent of the outstanding stock of a publicly held company. In addition, Mr. Mirchandani may not solicit our employees or customers for a period of one year following any termination of his employment with us. Mr. Mirchandani's employment agreement also contains a change in control provision which is discussed below in the section titled “Change in Control Agreements.”

In May 2019, we entered into an employment offer letter with Mr. Di Blasio upon his appointment as our Chief Revenue Officer. The agreement also provides that Mr. Di Blasio is eligible to participate in a sales incentive compensation plan which provides a cash bonus opportunity. Mr. Di Blasio is also eligible to participate in the employee benefits plans in which our other executives may participate. The agreement further provides that Mr. Di Blasio is entitled to certain equity awards, including

annual target equity awards and a one-time new hire award. If we terminate Mr. Di Blasio’s employment without cause or if Mr. Di Blasio terminates his employment for good reason, the agreement provides that Mr. Di Blasio will be entitled to receive a lump sum payment equal to 12 months of his then-current base salary. In addition Mr. Di Blasio shall receive an immediate lump sum payment equal to the cost he would have to pay for continuation of group health coverage under the Company’s group health plan pursuant to the Company’s obligations under applicable provisions of the Consolidated Omnibus Budget Reconciliation Act (commonly known as “COBRA”) or any similar law assuming he were to elect to continue group health coverage as in effect for himself and his dependents immediately prior to Mr. Di Blasio’s termination of employment. In addition, Mr. Di Blasio will be entitled to any other amounts or benefits previously accrued under our then applicable employee benefit plans, incentive plans or programs. Furthermore, the vesting of all stock options and stock awards held by Mr. Di Blasio shall immediately accelerate as for one year of additional vesting and any stock awards with performance conditions not yet determined shall be deemed earned at 100% of target. If we terminate Mr. Di Blasio’s employment by reason of death or disability, he will be entitled to any compensation earned but not yet paid, any stock options or awards shall immediately vest, and any stock awards with performance conditions not yet determined shall be deemed earned at 100% of target. The agreement also provides that, during his term of employment with us and for a period of one year following any termination of employment with us, Mr. Di Blasio may not (a) engage in, or have any interest in, or manage or operate any person, firm, corporation, partnership or business (whether as director, officer, employee, agent, representative, partner, security holder, consultant or otherwise) that engages in any business which then competes with any business of the Company or any subsidiary anywhere in the world (each, a “Competitor”) (other than beneficial ownership of up to 5% of the outstanding voting stock of a publicly traded company); (b) induce any employee of the Company or its subsidiaries to terminate such employment or to become employed by any Competitor; or (c) contact, induce or attempt to induce any customer or potential customer (of which Mr. Di Blasio had actual knowledge) to purchase products or services from any entity other than the Company, or to cease being a customer of the Company.

If we terminate Mr. Carolan’s employment without cause or if Mr. Carolan terminates his employment for good reason, the agreement provides that Mr. Carolan will be entitled to receive a lump sum payment equal to 12 months of his then-current base salary. In addition Mr. Carolan shall receive an immediate lump sum payment equal to the cost he would have to pay for continuation of group health coverage under the Company’s group health plan pursuant to the Company’s obligations under applicable provisions of the COBRA or any similar law assuming he were to elect to continue group health coverage as in effect for himself and his dependents immediately prior to Mr. Carolan’s termination of employment. In addition, Mr. Carolan will be entitled to any other amounts or benefits previously accrued under our then applicable employee benefit plans, incentive plans or programs. Furthermore, the vesting of all stock options and stock awards held by Mr. Carolan shall immediately accelerate as for one year of additional vesting and any stock awards with performance conditions not yet determined shall be deemed earned at 100% of target. If we terminate Mr. Carolan’s employment by reason of death or disability, he will be entitled to any compensation earned but not yet paid, any stock options or awards shall immediately vest, and any stock awards with performance conditions not yet determined shall be deemed earned at 100% of target. The agreement also provides that, during his term of employment with us and for a period of one year following any termination of employment with us, Mr. Carolan may not (a) engage in, or have any interest in, or manage or operate any person, firm, corporation, partnership or business (whether as director, officer, employee, agent, representative, partner, security holder, consultant or otherwise) that engages in any business which then competes with any business of the Company or any subsidiary anywhere in the world (each, a “Competitor”) (other than beneficial ownership of up to 5% of the outstanding voting stock of a publicly traded company); (b) induce any employee of the Company or its subsidiaries to terminate such employment or to become employed by any Competitor; or (c) contact, induce or attempt to induce any customer or potential customer (of which the Mr. Carolan had actual knowledge) to purchase products or services from any entity other than the Company, or to cease being a customer of the Company.

Change in Control Agreements

Mr. Mirchandani's employment agreement provides for the vesting of outstanding equity awards upon a change in control of our Company. Specifically, if a change in control of our Company occurs and Mr. Mirchandani's employment is terminated for reasons other than for cause or on account of disability or if Mr. Mirchandani terminates his employment for good reason, in each case, within two years of the change in control, then all equity awards held by Mr. Mirchandani shall immediately become exercisable and vested and any equity awards with performance conditions not yet determined will be deemed earned at 100% of target. Furthermore, subject to execution of a release of claims in favor of the Company, he shall be entitled to (1) a lump sum severance payment equal to 18 months of his base salary at the time of the change in control plus an amount equal to his target cash bonus at the time of the change in control, and (2) health insurance coverage for him and his dependents for an 18 month period.

We have entered into change of control agreements with each of our other named executive officers whose employment agreement sets forth the protections upon a change of control described above. Each of these agreements provide that if a change in control of our Company occurs and the employment of either of the named executive officers is terminated for reasons other than for cause, or if the officer terminates his employment within 60 days of a material diminution in his salary or duties or the relocation of his employment following a change in control of our Company, then all equity awards held by the named executive officer shall immediately become exercisable or vested. In addition, if a change in control of our Company occurs and the employment of either of the named executive offices is terminated for reasons other than for cause within two years of the change in control, or if the officer terminates his employment within 60 days of a material diminution in his salary or duties or the relocation of his employment within two years following a change in control of our Company, then that named executive officer shall be entitled to (1) a lump sum severance payment equal to one times the sum of his annual base salary at the time of the change in control and (2) health insurance coverage for him and his dependents for an 12 month period. Mr. Carolan is also entitled to receive all bonus payments made to him during the one-year period preceding the date of the change in control of the Company.

The change of control agreements with our named executives further provide that, for a 12 month period following the termination of employment, they may not engage in, or have any interest in, or manage or operate any company or other business (whether as a director, officer, employee, partner, equity holder, consultant or otherwise) that engages in any business which then competes with any of our businesses, other than beneficial ownership of up to five percent of the outstanding voting stock of a publicly traded company. The change of control agreements also prohibit our named executive officers from inducing any of our employees to terminate their employment with us or to become employed by any of our competitors during the 12 month period.

Estimated Payments and Benefits upon Termination or Change in Control

The amount of compensation and benefits payable to each named executive officer has been estimated in the table below. The amounts below assume that such termination was effective as of March 31, 2021, the last day of our fiscal year. The actual amounts to be paid out can only be determined at the time of such named executive officer’s separation from us.


	Compensation ($)
	Base Salary	Annual Cash Bonus	Accelerated Vesting of Restricted Stock & Performance Stock Units(1)		Continuation of Medical Benefits (Present Value)($)	Total Compensation and Benefits ($)
Sanjay Mirchandani
Death	—	—	16,110,939	(2)	—	16,110,939
Disability	—	—	16,110,939	(2)	—	16,110,939
Involuntary termination without cause or by non-extension of employment term	550,000	550,000	9,110,045	(3)	11,303	10,221,348
Involuntary termination without cause or by non-extension of employment term upon a change in control	825,000	825,000	16,110,939	(2)	11,303	17,772,242
Brian Carolan
Death	—	—	4,915,997	(2)	—	4,915,997
Disability	—	—	4,915,997	(2)	—	4,915,997
Involuntary termination without cause or by non-extension of employment term	410,000	—	2,583,612	(3)	36,622	3,030,234
Involuntary termination without cause or by non-extension of employment term upon a change in control	410,000	—	4,915,997	(2)	36,622	5,362,619
Riccardo Di Blasio
Death	—	—	3,369,609	(2)	—	3,369,609
Disability	—	—	3,369,609	(2)	—	3,369,609
Involuntary termination without cause or by non-extension of employment term	445,000	—	1,675,388	(3)	32,367	2,152,755
Involuntary termination without cause or by non-extension of employment term upon a change in control	445,000	—	3,369,609	(2)	32,367	3,846,976

(1)Amounts in this column describe the value of restricted stock unit awards and performance stock unit awards that would vest upon the triggering event described in the leftmost column, based on a closing price of $64.50 per share of our common stock on March 31, 2021.

(2)As described in the named executive officers' respective employment agreement, upon death, disability or involuntary termination without cause or by non-extension of employment related to a change in control, all outstanding restricted stock unit awards and performance stock unit awards would become immediately vested. Any stock awards with performance conditions that are not yet determinable (i.e. if the performance measurement period has not yet been completed) shall be deemed to have been earned at 100% of target, and shall be payable in accordance with their terms.

(3)As described in the named executive officers' respective employment agreement, involuntary termination without cause or by non-extension of employment (unrelated to a change in control) would result in the vesting of restricted stock units and performance stock unit awards which would have vested had the named executive officer remained with the Company an additional year. Any performance stock unit awards which had conditions that are not yet determined (i.e. if the performance measurement period has not yet been completed) shall be deemed to have been earned at 100% of target, and shall be payable in accordance with their terms.

Director Compensation

Our Compensation Committee of the Board of Directors determines the amount of any fees, whether payable in cash, shares of common stock or options to purchase common stock and expense reimbursement that non-employee directors receive for attending meetings of the Board of Directors or committees of the Board of Directors.

During fiscal 2021, our Compensation Committee engaged an external third-party compensation consultant, Compensia, to provide an assessment of our non-employee director compensation practices and also provided peer analysis information for structuring our director compensation practices related to cash compensation, equity compensation and equity vesting. Based on the results of the peer analysis, we revised our compensation program as shown below to align to the 50th percentile of the peer compensation data.

Cash compensation earned by our non-employee directors for their services as members of the Board of Directors or any committee of the Board of Directors was as follows:

•Annual retainer of $42,000 with an additional $2,000 for the Board meeting attended in July 2020;

•The independent chairperson of the Board receives an additional annual retainer of $125,000;

•The chairperson of each of our Audit Committee, Compensation Committee, Nominations and Governance Committee, and Operations Committee receives an additional annual retainer of $30,000, $20,000, $12,000 and $12,000, respectively; and

•Each committee member of the Audit Committee, Compensation Committee, Nominations and Governance Committee and Operations Committee receives an additional annual retainer of $15,000, $10,000, $5,000 and $5,000, respectively.

Non-employee directors are also eligible to receive equity compensation under our 2016 Incentive Plan pursuant to which all equity awards granted to our non-employee directors, with the entire award vesting one year from the date of grant. In fiscal 2021, we granted an equity award to our non-employee directors in August 2020 related to our fiscal 2021 service. This equity award consists of 4,618 restricted stock units to each non-employee director in which the entire award will cliff vest in August 2021. See “Long-Term Equity Incentive Awards” in the Compensation Discussion and Analysis above for more information about this plan. We also reimburse all of our directors for their reasonable expenses incurred in attending meetings of our board or committees.

The following table sets forth information concerning the compensation received for services rendered to us by our non-employee directors in fiscal 2021:


Name	Fees Earned or Paid in Cash		Stock Awards (1)		Total
Nicholas Adamo (2)	$	156,500	$	200,006	$	356,506
Martha H. Bejar (3)	$	49,000	$	200,006	$	249,006
R. Todd Bradley (4)	$	59,000	$	200,006	$	259,006
Keith Geeslin (5)	$	64,000	$	200,006	$	264,006
Vivie “YY” Lee (6)	$	54,000	$	200,006	$	254,006
Charles E. Moran (7)	$	64,000	$	200,006	$	264,006
Allison Pickens (8)	$	49,000	$	200,006	$	249,006
Arlen Shenkman (9)	$	71,000	$	200,006	$	271,006
Gary B. Smith (10)	$	56,000	$	200,006	$	256,006
David F. Walker (11)	$	74,000	$	200,006	$	274,006

(1)The amounts in theses column represent the grant date fair value of restricted stock unit awards granted during the fiscal year indicated as computed in accordance with FASB ASC Topic 718. The amounts reported disregard estimated forfeitures related to service-based vesting conditions. See the notes to our consolidated financial statements contained in our Annual Report on Form 10-K for the year ended March 31, 2021 for a discussion of all assumptions made by us in determining the grant date fair value of such awards.

(2)Mr. Adamo has 4,618 restricted stock units outstanding as of March 31, 2021.

(3)Ms. Bejar has 4,618 restricted stock units outstanding as of March 31, 2021.

(4)Mr. Bradley has 4,618 restricted stock units outstanding as of March 31, 2021.

(5)Mr. Geeslin has 24,500 stock options and 4,618 restricted stock units outstanding as of March 31, 2021.

(6)Ms. Lee has4,618 restricted stock units outstanding as of March 31, 2021.

(7)Mr. Moran has 4,618 restricted stock units outstanding as of March 31, 2021.

(8)Ms. Pickens has 4,618 restricted stock units outstanding as of March 31, 2021.

(9)Mr. Shenkman has 4,618 restricted stock units outstanding as of March 31, 2021.

(10)Mr. Smith has 24,500 stock options and 4,618 restricted stock units outstanding as of March 31, 2021.

(11)Mr. Walker has 17,000 stock options and 4,618 restricted stock units outstanding as of March 31, 2021.

Compensation Policies and Practices as They Relate to Risk Management

We have reviewed our compensation policies and practices for all employees and concluded that any risks arising from our policies and practices are not reasonably likely to have a material adverse effect on us.

CEO Pay Ratio

As required by Item 402(u) of Regulation S-K, we are providing the following information regarding the relationship of the annual total compensation for our CEO compared to the median of the annual total compensation of all our employees (except for our CEO).

For fiscal 2021:

•The median of the annual total compensation of all our employees, excluding our CEO, was $119,534

•The annual total compensation of our CEO was $8,004,986

•Therefore, the ratio of CEO compensation relative to the median employee is approximately 67 to 1

We believe that this pay ratio is a reasonable estimate calculated in a manner consistent with Item 402(u) of Regulation S-K.

Since there has been no change in our employee population or employee compensation arrangements in the past fiscal year that we reasonably believe would result in a significant change to our pay ratio disclosure, we have elected to use the same median employee that was identified for fiscal 2019 to calculate our fiscal 2021 CEO pay ratio, as allowed by Item 402(u) of Regulation S-K.

The methodology we used to identify our median employee for fiscal 2019 was as follows:

•We selected March 1, 2019 as the date upon which we identified our employee population. We included all employees as of that date, with no exclusions.

•We used total cash compensation as our consistently applied compensation measure to identify our median employee. For this purpose, we defined total cash compensation as base wages plus any incentive compensation (bonuses or commissions), and did not annualize the compensation of any employees who were employed less than a full year and we did not make any adjustments, assumptions or estimates. For employees outside the United States, we converted their cash compensation to U.S. dollars using the applicable March 1, 2019 exchange rate

•Using this methodology, we determined that our median employee was a full-time, salaried employee based in the United States

We calculated the annual total compensation of our median employee in the same manner that we calculated the total compensation of our CEO for purposes of the Summary Compensation Table. This annual total compensation amount for our median employee was then compared to the annual total compensation of our CEO as reported in the “Total” column of our fiscal 2021 Summary Compensation Table included in this Proxy Statement to determine the pay ratio.

It should be noted that the SEC rules provide a fair amount of flexibility in developing a methodology to identify the median employee, and the global composition of our workforce may contribute to a lack of comparability between our pay ratio and that of our peer companies.

COMPENSATION COMMITTEE REPORT

Commvault Systems, Inc.

Compensation Committee

Report On Executive Compensation

The Compensation Committee has reviewed and discussed the Compensation Discussion and Analysis contained in this proxy statement with management and, based on such review and discussion, the Compensation Committee recommended to the Board of Directors that the Compensation Discussion and Analysis be included in our company’s annual report on Form 10-K for the year ended March 31, 2021 and in this proxy statement.


Compensation Committee
Keith Geeslin - Chairman
R. Todd Bradley
YY Lee

AUDIT COMMITTEE REPORT

General

The Audit Committee comprises three directors and operates under a written charter for the Audit Committee. All of the members of the Audit Committee meet the definition of independent for purposes of the Nasdaq listing standards. In addition, our Board of Directors has determined that each of Messrs. Walker, Shenkman and Moran qualify as an “audit committee financial expert” under the applicable SEC rules and satisfy Nasdaq’s financial literacy requirements.

Report

The Audit Committee has furnished the following report:

The Audit Committee has reviewed and discussed the audited financial statements of our company for the fiscal year ended March 31, 2021 with our management. In addition, the Audit Committee has discussed with Ernst & Young LLP, our independent auditors (“Ernst & Young”), the matters required to be discussed by the applicable requirements of the Public Company Accounting Oversight Board (PCAOB) and the SEC.

The Audit Committee has also received from the independent auditors written disclosures and the letter regarding the independent auditors’ communications with the Audit Committee concerning independence required by the applicable requirements of the PCAOB, and has discussed with the independent auditors, the independent auditors’ independence.

The Audit Committee has considered whether the services rendered by our independent public accountants with respect to audit, audit-related, tax and other non-audit fees are compatible with maintaining their independence.

Based on the review and discussions referred to above, the Audit Committee recommended to the Board of Directors that the audited financial statements for our company for the fiscal year ended March 31, 2021 be included in our Annual Report on Form 10‑K for the fiscal year ended March 31, 2021 for filing with the SEC.


Audit Committee
David F. Walker — Chairman
Chuck Moran
Arlen Shenkman

PROPOSAL NO. 2

RATIFICATION OF THE APPOINTMENT OF INDEPENDENT AUDITORS

Financial statements of our company and our consolidated subsidiaries will be included in our Annual Report furnished to all stockholders. The Audit Committee of the Board of Directors has appointed Ernst & Young LLP (“Ernst & Young”) as independent public accountants for us to examine our consolidated financial statements for the fiscal year ending March 31, 2022, and has determined that it would be desirable to request that the stockholders ratify the appointment. You may vote for, vote against or abstain from voting with respect to this proposal. Assuming the presence of a quorum, the affirmative vote of a majority of the votes cast, in person or by proxy, at the Annual Meeting is required to ratify the appointment. If the stockholders do not ratify the appointment, the Audit Committee will reconsider the appointment for the 2023 fiscal year, rather than the 2022 fiscal year, because of the difficulty and expense involved in changing independent auditors on short notice. Ernst & Young was engaged as our principal independent public accountants for fiscal years 1998 through 2021. Representatives of Ernst & Young are expected to be present at the Annual Meeting, will have the opportunity to make a statement if they desire to do so and are also expected to be available to respond to appropriate questions.

Audit, Audit-Related, Tax and All Other Fees

The following table summarizes the aggregate fees and expenses billed to us for the fiscal years ended March 31, 2021 and 2020 by our principal accounting firm, Ernst & Young:


	2021		2020
	(In thousands)
Audit fees	$	1,948	$	2,194
Audit-related fees	3		307
Tax fees	1,377		1,380
All other fees	—		—
	$	3,328	$	3,881

Audit Fees - all services necessary to perform an audit of the consolidated financial statements of our company; the reviews of our company’s quarterly reports on Form 10-Q; services in connection with statutory and regulatory filings or engagements; comfort letters; statutory audits; consents and review of documents filed with the SEC.

Audit Related Fees - XBRL filing services and subscription to EY Online Research Tool. Fiscal 2020 audit related fees include services related to the acquisition of Hedvig.

Tax Fees - tax compliance; tax planning; and other tax advice.

All Other Fees - any other work that is not Audit, Audit-Related or a Tax Service.

In considering the nature of the services provided by Ernst & Young, the Audit Committee determined that such services are compatible with the provision of independent audit services. The Audit Committee discussed these services with Ernst & Young and our management to determine that they are permitted under the rules and regulations concerning auditor independence promulgated by the SEC to implement the Sarbanes-Oxley Act of 2002, as well as by the American Institute of Certified Public Accountants.

Policy on Audit Committee Pre-Approval of Audit and Non-Audit Services of Independent Auditor

The Audit Committee is responsible for appointing, setting compensation and overseeing the work of the independent auditor. The Audit Committee has established a policy regarding pre-approval of permissible non-audit services provided by the independent auditor. Generally, pre-approvals may be made by the chairperson of the Audit Committee in accordance with the rules of the Securities and Exchange Commission. All of the services performed by Ernst & Young in the year ended March 31, 2021 were pre-approved in accordance with the pre-approval policy adopted by the Audit Committee.

The Board of Directors recommends that you vote FOR this proposal.

PROPOSAL NO. 3

APPROVAL OF THE OMNIBUS INCENTIVE PLAN,

AS AMENDED BY THE FIFTH AMENDMENT

Our Board of Directors recommends approval of the Company’s 2016 Incentive Plan, as amended by the Fifth Amendment.

Our Board of Directors believes it is important for employees to have an equity interest in our company, and is recommending the 2016 Incentive Plan as amended by the Fifth Amendment to stockholders for approval so that the 2016 Incentive Plan can continue to operate. Increasing the number of Common Stock available for issuance under the 2016 Incentive Plan is necessary to ensure that we have a sufficient number of shares of Common Stock available for issuance under the 2016 Incentive Plan for the foreseeable future.

The Fifth Amendment increases the number of Common Stock reserved for delivery under the 2016 Incentive Plan by 2,000,000 shares of Common Stock. The Fifth Amendment does not amend or replace any other provisions of the 2016 Incentive Plan. The Fifth Amendment will become effective upon stockholder approval.

The following summary of the 2016 Incentive Plan, as amended by the Fifth Amendment, is qualified in its entirety by the complete text of the 2016 Incentive Plan (as so amended) contained in Annex A to this proxy statement.

Background

We previously maintained the Commvault Systems, Inc. 1996 Stock Option Plan and 2006 Long-Term Stock Incentive Plan (the “LTIP”, and together with the 1996 Stock Option Plan, the “Prior Plans”).

A total of 1.1 million shares of our common stock (“Common Stock”) currently remain available to be issued upon exercise or settlement of outstanding awards under the Prior Plans as of the date of this proxy statement. As of the date of this proxy statement 7,883,038 have been granted under the 2016 Incentive Plan. As of the date of this proxy, no stock options have been granted under the 2016 Incentive Plan. The 2016 Incentive Plan, as previously amended, reserved a total of 8,050,000 shares of Common Stock. The Fifth Amendment will reserve a total 10,050,000 of shares of Common Stock for issuance under the 2016 Incentive Plan, reflecting an increase of 2,000,000 shares.

The 2016 Incentive Plan authorizes a broad range of awards including stock options (“Options”), stock appreciation rights (“SARs”), Full Value Awards (as more fully described below, including restricted stock, restricted stock units (“RSUs”), performance shares or units, and other stock-based awards) and cash-based awards. A person who has been granted an award under the 2016 Incentive Plan is referred to herein as a “Participant” in the 2016 Incentive Plan.

The 2016 Incentive Plan is not qualified under Section 401(a) of the Code.

The future awards that may be granted to participants under the 2016 Incentive Plan cannot be determined at this time. Any such awards granted under the 2016 Incentive Plan will be within the discretion of the Compensation Committee, and the Compensation Committee has not determined future awards or who might receive them.

On June 24, 2021, the last reported sale price of our Common Stock on the NASDAQ stock market was $81.04 per share.

Key Data

The following table includes information regarding outstanding equity awards and shares available for future awards under our Prior Plans and the 2016 Incentive Plan as of May 31, 2021:


Options Outstanding			1,248,798
Non-Vested Time Vesting Restricted Stock Units			2,930,498
Performance Vesting Shares Outstanding			469,230
Shares Available for Grant			1,227,681
Weighted Average Exercise Price of Outstanding Options			$63.22
Weighted Average Remaining Term of Options Outstanding			1.96

The following table summarizes our equity usage during the three most recent fiscal years:


Time Period	Time Vesting RSUs Granted	Financial Performance Shares Granted	Financial Performance Shares Earned	Market Based Shares Granted	Market Based Shared Earned(1)	Weighted Average Common Shares Outstanding (Diluted)
Fiscal 2021	1,797,021	—	—	298,585	323,467	46,652,000
Fiscal 2020	2,451,000	104,545	7,776	94,804	93,601	45,793,000
Fiscal 2019	998,000	72,463	66,665	121,432	63,456	45,827,000

(1) Unvested market based shares are represented at present value as of May 31, 2021. These shares may vary until actual results are confirmed.

Purpose and Overview

The purpose of the 2016 Incentive Plan is to

•attract and retain persons who are eligible to participate in the 2016 Incentive Plan,

•advance our interests and the interests of our stockholders by providing persons who are eligible to participate in the 2016 Incentive Plan, upon whose judgment, initiative and efforts we largely depend, with appropriate incentives to perform in a superior manner and achieve long-range goals, creating a link between performance and compensation,

•provide incentive compensation opportunities that are competitive with other similar companies, and

•further align the interests of 2016 Incentive Plan participants with those of our stockholders, and to thereby promote the long-term financial interests of us and our affiliated companies, including the growth in value of our equity and long-term stockholder return.

Restriction on Repricing

The 2016 Incentive Plan includes a restriction providing that, without stockholder approval or other than as a result of adjustments in connection with corporate transactions, we cannot not decrease the exercise price of an Option or SAR after the date of grant or permit any Option or SAR to be surrendered to us as consideration for the grant of a replacement Option or SAR with a lower exercise price or a Full Value Award. In addition, in no event may an Option or SAR granted under the 2016 Incentive Plan be surrendered to us in consideration for a cash payment if, at the time of such surrender, the exercise price of the Option or SAR is greater than the then current fair market value of a share of Common Stock.

Description of 2016 Incentive Plan

Administration

The 2016 Incentive Plan is administered by a committee (the “Committee”) of not fewer than two directors (or a greater number if required for compliance with certain securities laws) who are independent for purposes of stock exchange listing requirements and are non-employee directors for purposes of Rule 16b-3 under the Securities Exchange Act of 1934 (the

“Exchange Act”). If an award is intended to constitute performance-based compensation for purposes of Section 162(m) of the Code, including Options and SARs, the Committee will consist solely of two or more outside directors within the meaning of Section 162(m) of the Code and applicable regulations. See below regarding the applicability of Section 162(m) of the Code to awards under the 2016 Incentive Plan.

In the case of awards to outside directors, the Committee is our Board of Directors. The Committee selects award recipients under the 2016 Incentive Plan who will thereby become Participants, the types of awards to be granted and the applicable terms, conditions, performance criteria, restrictions and other provisions of such awards. The Committee also has the authority to conclusively interpret the 2016 Incentive Plan and to adopt rules and procedures relating to the 2016 Incentive Plan and awards made thereunder. Subject to stock exchange lists rules and applicable law, the Committee may delegate all or any portion of its responsibilities or powers under the 2016 Incentive Plan to persons selected by it. The number and types of awards that will be granted to any one individual or category of individuals under the 2016 Incentive Plan in the future are not currently determinable, as the Committee will make these determinations in its discretion.

Eligibility

All officers, directors or other employees of us or a related company, consultants, independent contractors or agents of us or a related company, and persons who are expected to become officers, employees, directors, consultants, independent contractors or agents of us or a related company including, in each case, directors who are not employees of us or any related company (“Outside Directors”), are eligible to receive awards under the 2016 Incentive Plan and thereby become Participants in the 2016 Incentive Plan. Awards to a person who is expected to become a service provider to us or a related company cannot be effective prior to the date on which such person’s service begins. Incentive stock options (“ISOs”) may only be granted to employees of us and our corporate related companies which satisfy certain Code requirements. Generally, a company is a related company to us for any period during which we own (directly or indirectly) at least 50% of voting power or ownership interests in such entity or an entity that owns (directly or indirectly) at least 50% of the voting power of our stock.

Approximately all of our 2,600 employees were eligible on an annual basis to receive awards under the Prior Plans and in fiscal 2021, we granted equity awards of the type authorized in the 2016 Incentive Plan to approximately 2,600 persons.

Shares of Common Stock Available for Awards

Awards may be made under the 2016 Incentive Plan with respect to Common Stock currently authorized but unissued or, as permitted by applicable law, currently held or acquired by us as treasury shares, including shares of Common Stock purchased in the open market or in private transactions. At the discretion of the Committee, an award under the 2016 Incentive Plan may be settled in cash rather than Common Stock.

The maximum number of shares of Common Stock that may be delivered under the 2016 Incentive Plan is equal to 8,050,000 shares. Assuming the Fifth Amendment to the 2016 Incentive Plan is approved, the maximum number of shares of Common Stock that may be delivered under the 2016 Incentive Plan will be 10,050,000 shares. Any shares of Common Stock covered by an award under the 2016 Incentive Plan that is forfeited, expires or is terminated without issuance of shares of Common Stock (including shares of Common Stock that are attributable to awards that are settled in cash) and shares of Common Stock that are withheld in payment of taxes payable with respect to the vesting or settlement of a Full Value Award shall thereafter be available for further grants under the 2016 Incentive Plan. Shares of Common Stock that are tendered or withheld in payment of the exercise price of an Option or shares of Common Stock that are tendered or withheld in payment of taxes payable with respect to the exercise of an Option or SAR shall not be available for further grants under the 2016 Incentive Plan. Shares subject to a Stock Appreciation Right issued under the 2016 Incentive Plan that are not issued in connection with the stock settlement of that Stock Appreciation Right upon its exercise shall not again become available for Awards or increase the number of shares available for grant.

The following additional limits apply to awards under the 2016 Incentive Plan:

•no more than 3,550,000 shares of Common Stock may be subject to ISOs granted under the 2016 Incentive Plan;

•the maximum number of shares of Common Stock that may be covered by Options and SARs that are intended to be performance-based compensation and that are granted to any one Participant in any one calendar year may not exceed 500,000 shares of Common Stock;

•with respect to Full Value Awards that are intended to be performance-based compensation, the maximum number of shares of Common Stock that may be delivered pursuant to any such award granted to any one Participant during any calendar year, regardless of whether settlement of the award is to occur prior to, at the time of, or after the time of vesting, may not exceed 250,000 shares of Common Stock; and

•in the case of Cash Incentive Awards (as described below) that are intended to be performance-based compensation, the maximum amount payable to any one Participant with respect to any performance period of twelve months (pro-rated for performance periods of greater or lesser than twelve months) is $2,500,000.

In the case of Full Value Awards and Cash Incentive Awards that are intended to be performance-based compensation, if the award is denominated in shares but an equivalent amount of cash is delivered (or vice versa), the foregoing limitations will be applied based on the methodology used by the Committee to convert shares of Common Stock to cash (or vice versa). If delivery of cash or shares of Common Stock is deferred until after the cash or shares of Common Stock are earned, any adjustment in the amount delivered to reflect actual or deemed investment experience after the cash or shares of Common Stock are earned will be disregarded.

In no event shall the dollar value of any award granted to any Outside Director for any calendar year (determined as of the date of grant) exceed $500,000 ($1,000,000 for the initial year of directorship).

In the event of a corporate transaction, including a stock dividend, stock split, reverse stock split, extraordinary cash dividend, recapitalization, reorganization, merger, consolidation, split-up, spin-off, exchange of shares, sale of assets or subsidiaries, combination or other corporate transaction, that affects the Common Stock such that the Committee determines that an adjustment is warranted in order to preserve the benefits or prevent the enlargement of benefits of awards under the 2016 Incentive Plan, the Committee will make adjustments to awards in a manner that it determines to be equitable in its discretion. Actions that the Committee may take are:

•adjustment of the number and kind of shares which may be delivered under the 2016 Incentive Plan (including adjustments to the individual limitations described above);

•adjustment of the number and kind of shares subject to outstanding awards;

• adjustment of the exercise price of outstanding Options and SARs; and

• any other adjustments that the Committee determines to be equitable, which may include, without limitation,

◦replacement of awards with other awards which the Committee determines have comparable value and which are based on stock of a company resulting from the transaction, and

◦cancellation of the award in return for cash payment of the current value of the award, determined as though the award is fully vested at the time of payment, provided that in the case of an Option or SAR, the amount of such payment may be the excess of the value of the shares of Common Stock subject to the Option or SAR at the time of the transaction over the exercise price.

Types of Awards

Options. The Committee may grant Options to purchase shares of Common Stock, which Options may be either ISOs or non-qualified stock options (“NQO”). The exercise price of an Option must be no less than the fair market value of a share of Common Stock on the date the Option is granted. ISOs may only be granted to employees of us or our permitted corporate subsidiaries and must satisfy other requirements of section 422 of the Code. An Option that does not satisfy the requirements for an ISO will be treated as a NQO. Except for reductions approved by our stockholders or adjustment for corporate transactions, the exercise price of an Option may not be decreased after the date of grant nor may an Option be surrendered to us as consideration for the grant of a replacement Option or SAR with a lower exercise price or a Full Value Award. In addition, except as approved by our stockholders, no Option granted under the 2016 Incentive Plan may be surrendered to us in consideration of a cash payment if, at the time of such surrender, the exercise price of the Option is greater than the then fair market value of a share of Common Stock. Options will be exercisable in accordance with the terms established by the Committee. The full exercise price of each share of Common Stock purchased upon the exercise of any Option must be paid at the time of exercise of the Option (except if the exercise price is payable through the use of cash equivalents, the exercise price may be paid as soon as practicable after exercise). Subject to applicable law, the exercise price of an Option may be payable in cash or cash equivalents, shares of Common Stock (valued at fair market value as of the day of exercise), or a combination thereof. The Committee, in its discretion, may impose such conditions, restrictions, and contingencies on the shares of Common Stock acquired pursuant to the exercise of an Option as the Committee determines to be desirable, including conformity with our recoupment or clawback policies as in effect from time to time. Except as provided by the Committee, an Option will expire on the earliest to occur of the following

•the 30th day after the Participant’s employment or service terminates for any reason other than for cause (as defined in the 2016 Incentive Plan), or

•the day on which the Participant’s employment or service terminates for cause.

In any event, an Option will expire no later than the 10th anniversary of the date on which it is granted (or such shorter period required by the rules of any stock exchange on which the Common Stock is listed).

SARs. A SAR entitles the Participant to receive the amount (in cash or shares of Common Stock) by which the fair market value of a specified number of shares of Common Stock on the exercise date exceeds an exercise price established by the Committee, which exercise price may not be less than the fair market value of the shares of Common Stock at the time the SAR is granted. Generally, a SAR will be exercisable in accordance with the terms established by the Committee and SARs are generally subject to the same terms and restrictions as apply to Options as described above (except for matters, such as payment of the exercise price, which do not apply to SARs), including the prohibition on lowering of the exercise price, exchanges of the SAR for cash or other awards, the expiration date provisions, and the minimum vesting period.

Full Value Awards. A Full Value Award is a grant of one or more shares of Common Stock or a right to receive one or more shares of Common Stock in the future (including restricted stock, restricted stock units, deferred stock units, performance stock and performance stock units). Such grants may be subject to such conditions, restrictions and contingencies, as determined by the Committee, including provisions relating to dividend or dividend equivalent rights and deferred payment or settlement. Notwithstanding the foregoing, no dividends or dividend equivalent rights will be paid or settled on performance-based awards that have not been earned based on the performance criteria established.

Cash Incentive Awards. A “Cash Incentive Award” is the grant of a right to receive a payment of cash (or in the discretion of the Committee, shares of Common Stock having value equivalent to the cash otherwise payable) that is contingent on achievement of performance objectives over a specified period established by the Committee. The grant of Cash Incentive Awards may also be subject to such other conditions, restrictions and contingencies, as determined by the Committee, including provisions relating to deferred payment.

Except for awards granted under the 2016 Incentive Plan with respect to shares of Common Stock which do not exceed, in the aggregate, five percent of the total number of shares of Common Stock reserved for issuance pursuant to the 2016 Incentive Plan as described above, a Participant’s right to become vested in a Full Value Award, an Option or SAR is conditioned on the completion of a specified period of service with the Company or its related companies of at least one year, except if accelerated in the event of the Participant’s death or Disability.

Change in Control

If a Change in Control (as defined in the 2016 Incentive Plan) occurs prior to the date on which an award is vested and prior to the Participant’s separation from service, if such award remains outstanding following the Change in Control (whether by substitution with another award or otherwise), and if the Participant’s service is involuntarily terminated by the Company or a related company (or any successor thereto), other than for cause, on or within two years following the Change in Control, then:

•all outstanding Options (regardless of whether in tandem with SARs) shall become fully exercisable;

•all outstanding SARs (regardless of whether in tandem with Options) shall become fully exercisable; and

•all Full Value awards shall become fully vested and the Committee shall determine the extent to which performance conditions are met, taking into account actual performance and/or the passage of time, in accordance with the terms of the 2016 Incentive Plan and the applicable award agreement.

To the extent any provision of the 2016 Incentive Plan or an award agreement would cause a payment of deferred compensation that is subject to section 409A of the Code to be made upon the occurrence of a Change in Control, then such payment shall not be made unless such Change in Control also constitutes a “change in ownership”, “change in effective control” or “change in ownership of a substantial portion of the Company’s assets” within the meaning of section 409A of the Code. In addition, if an award does not remain outstanding following a Change in Control, the Committee shall determine the vesting and other terms and conditions of the award in connection with the Change in Control in accordance with the terms of the 2016 Incentive Plan.

Non-U.S. Employees

The Committee may grant awards to eligible persons who are foreign nationals on such terms and conditions different from those specified in the 2016 Incentive Plan as may, in the judgment of the Committee, be necessary or desirable to foster and promote achievement of the purposes of the 2016 Incentive Plan. In furtherance of such purposes, the Committee may make such modifications, amendments, procedures and subplans as may be necessary or advisable to comply with provisions of laws in other countries or jurisdictions in which we or a related company operates or has employees. The foregoing cannot be applied to increase the share limitations under the 2016 Incentive Plan or to otherwise change any provision of the 2016 Incentive Plan that would otherwise require the approval of our stockholders.

Other 2016 Incentive Plan Information

Awards under the 2016 Incentive Plan are not transferable except as designated by the Participant by will or by laws of descent and distribution or, unless otherwise provided by the Committee, pursuant to a qualified domestic relations order. Unless otherwise provided by the Committee, awards (other than an ISO) may be transferred to or for the benefit of the Participant’s family (including, without limitation, to a trust or partnership for the benefit of a Participant’s family) in accordance with rules established by the Committee.

All awards and other payments under the 2016 Incentive Plan are subject to withholding of all applicable taxes. With the consent of the Committee, withholding obligations may be satisfied with previously-owned shares of Common Stock or shares of Common Stock to which the Participant is otherwise entitled under the 2016 Incentive Plan. Shares of Common Stock that have been held less than six months may only be used to satisfy minimum withholding requirements (or other rates that will not have a negative accounting impact).

The Board may, at any time, amend or terminate the 2016 Incentive Plan, and the Board or the Committee may amend any award agreement, provided that no amendment or termination may, in the absence of written consent to the change by the affected Participant (or, if the Participant is not then living, the affected beneficiary), adversely affect the rights of any Participant or beneficiary under any award granted under the 2016 Incentive Plan prior to the date such amendment is adopted by the Board (or the Committee, if applicable). The provisions of the 2016 Incentive Plan that prohibit repricing of Options and SARs cannot be amended unless the amendment is approved by the our stockholders and no other amendment shall be made to the 2016 Incentive Plan without the approval of our stockholders if such approval is required by law or the rules of any stock exchange on which the Common Stock is listed. Adjustment to awards made in connection with corporate transactions are not subject to the foregoing restrictions.

U.S. Federal Income Tax Considerations

The discussion which follows is a summary, based on current law, of some significant U.S. federal income tax considerations relating to awards under the 2016 Incentive Plan. The following is based on U.S. federal tax laws and regulations presently in effect, which are subject to change, and the discussion does not purport to be a complete description of the federal income tax aspects of the 2016 Incentive Plan. The Participant may also be subject to state and local taxes and employment taxes in connection with stock purchased under the 2016 Incentive Plan. The Participant should consult with an individual tax advisor to determine the applicability of the tax aspects of 2016 Incentive Plan participation in the Participant’s personal circumstances. The Company suggests that Participants subject to taxation in other countries other than the United States consult their individual tax advisors in such jurisdictions.

NQOs. The grant of an NQO will not result in taxable income to the Participant. Except as described below, the Participant will realize ordinary income at the time of exercise in an amount equal to the excess of the fair market value of the shares of Common Stock acquired over the exercise price for those shares of Common Stock, and we will be entitled to a corresponding deduction. Gains or losses realized by the Participant upon disposition of such shares of Common Stock will be treated as capital gains and losses, with the basis in such shares of Common Stock equal to the fair market value of the shares of Common Stock at the time of exercise.

The exercise of an NQO through the delivery of previously acquired Common Stock will generally be treated as a non-taxable, like-kind exchange as to the number of shares of Common Stock surrendered and the identical number of shares of Common Stock received under the Option. That number of shares of Common Stock will take the same basis and, for capital gains purposes, the same holding period as the shares of Common Stock that are given up. The value of the shares of Common Stock received upon such an exchange that are in excess of the number given up will be includible as ordinary income to the

Participant at the time of the exercise. The excess shares of Common Stock will have a new holding period for capital gain purposes and a basis equal to the value of such shares of Common Stock determined at the time of exercise.

ISO. The grant of an ISO will not result in taxable income to the Participant. The exercise of an ISO will not result in taxable income to the Participant provided that the Participant was, without a break in service, an employee of us or a corporate subsidiary during the period beginning on the date of the grant of the Option and ending on the date three months prior to the date of exercise (one year prior to the date of exercise if the Participant is disabled, as that term is defined in the Code).

The excess of the fair market value of the shares of Common Stock at the time of the exercise of an ISO over the exercise price is an adjustment that is included in the calculation of the Participant’s alternative minimum taxable income for the tax year in which the ISO is exercised. For purposes of determining the Participant’s alternative minimum tax liability for the year of disposition of the shares of Common Stock acquired pursuant to the ISO exercise, the Participant will have a basis in those shares of Common Stock equal to the fair market value of the shares of Common Stock at the time of exercise.

If the Participant does not sell or otherwise dispose of the shares of Common Stock within two years from the date of the grant of the ISO or within one year after receiving the transfer of such shares of Common Stock, then, upon disposition of such shares of Common Stock, any amount realized in excess of the exercise price will be taxed to the Participant as capital gain, and we will not be entitled to any deduction for Federal income tax purposes. A capital loss will be recognized to the extent that the amount realized is less than the exercise price.

If the foregoing holding period requirements are not met, the Participant will generally realize ordinary income, and a corresponding deduction will be allowed to us, at the time of the disposition of the shares of Common Stock, in an amount equal to the lesser of (a) the excess of the fair market value of the shares of Common Stock on the date of exercise over the exercise price, or (b) the excess, if any, of the amount realized upon disposition of the shares of Common Stock over the exercise price. If the amount realized exceeds the value of the shares of Common Stock on the date of exercise, any additional amount will be capital gain. If the amount realized is less than the exercise price, the Participant will recognize no income, and a capital loss will be recognized equal to the excess of the exercise price over the amount realized upon the disposition of the shares of Common Stock.

The exercise of an ISO through the exchange of previously acquired stock will generally be treated in the same manner as such an exchange would be treated in connection with the exercise of an NQO; that is, as a non-taxable, like-kind exchange as to the number of shares of Common Stock given up and the identical number of shares of Common Stock received under the Option. That number of shares of Common Stock will take the same basis and, for capital gain purposes, the same holding period as the shares of Common Stock that are given up. However, such holding period will not be credited for purposes of the one-year holding period required for the new shares of Common Stock to receive ISO treatment. Common shares received in excess of the number of shares of Common Stock given up will have a new holding period and will have a basis of zero or, if any cash was paid as part of the exercise price, the excess shares of Common Stock received will have a basis equal to the amount of the cash. If a disqualifying disposition (a disposition before the end of the applicable holding period) occurs with respect to any of the shares of Common Stock received from the exchange, it will be treated as a disqualifying disposition of the shares of Common Stock with the lowest basis.

If the exercise price of an ISO is paid with shares of Common Stock acquired through a prior exercise of an ISO, gain will be realized on the shares of Common Stock given up (and will be taxed as ordinary income) if those shares of Common Stock have not been held for the minimum ISO holding period (two years from the date of grant and one year from the date of transfer), but the exchange will not affect the tax treatment, as described in the immediately preceding paragraph, of the shares of Common Stock received.

SARs. A Participant generally will not realize any taxable income upon the grant of a SAR. Upon the exercise of the SAR, the Participant will recognize ordinary income in an amount equal to the amount of cash and/or the fair market value, at the date of such exercise, of the shares of Common Stock received by the Participant as a result of such exercise. We will generally be entitled to a deduction in the same amount as the ordinary income realized by the Participant.

Full Value Awards. The federal income tax consequences of a Full Value Award will depend on the type of award. The tax treatment of the grant of shares of Common Stock depends on whether the shares are subject to a substantial risk of forfeiture (determined under Code rules) at the time of the grant. If the shares are subject to a substantial risk of forfeiture, the Participant will not recognize taxable income at the time of the grant and when the restrictions on the shares lapse (that is, when the shares are no longer subject to a substantial risk of forfeiture), the Participant will recognize ordinary taxable income in an amount equal to the fair market value of the shares at that time. If the shares are not subject to a substantial risk of forfeiture or if the Participant elects to be taxed at the time of the grant of such shares under section 83(b) of the Code, the Participant will recognize taxable income at the time of the grant of shares in an amount equal to the fair market value of such shares at that time, determined without regard to any of the restrictions. If the shares are forfeited before the restrictions lapse, the Participant

will be entitled to no deduction on account thereof. The Participant’s tax basis in the shares is the amount recognized by him or her as income attributable to such shares. Gain or loss recognized by the Participant on a subsequent disposition of any such shares is capital gain or loss if the shares are otherwise capital assets.

In the case of other Full Value Awards, such as restricted stock units or performance stock units, the Participant generally will not have taxable income upon the grant of the award provided that there are restrictions on such awards that constitute a substantial risk of forfeiture under applicable Code rules. Participants will generally recognize ordinary income when the restrictions on awards lapse, on the date of grant if there are no such restrictions or, in certain cases, when the award is settled. At that time, the Participant will recognize taxable income equal to the cash or the then fair market value of the shares issuable in payment of such award, and such amount will be the tax basis for any shares received. In the case of an award which does not constitute property at the time of grant (such as an award of units), Participants will generally recognize ordinary income when the award is paid or settled.

We generally will be entitled to a tax deduction in the same amount, and at the same time, as the income is recognized by the Participant.

Parachute Payments. Any acceleration of the vesting or payment of awards under the 2016 Incentive Plan in the event of a change in control in the Company may cause part or all of the consideration involved to be treated as an “excess parachute payment” under the Code, which may subject the Participant to a twenty percent excise tax and preclude deduction by the Company.

Performance Based Compensation. As discussed above (in the Section entitled “Deductibility of Executive Compensation”), Section 162(m) of the Code imposes a $1 million limit on the amount that a publicly-traded corporation may deduct for compensation paid to each of the company’s principal executive officer, principal financial officer and the company’s three next most highly compensated executives (“covered employees”). Beginning in 2018, we were no longer able to take a deduction for any compensation paid to our named executive officers in excess of $1 million unless the compensation originally qualified for the “performance-based” compensation exception and qualifies for transition relief applicable to certain arrangements in place on November 2, 2017. Although the 2016 Plan continues to include individual limits on awards as required by section 162(m), future awards under the 2016 Plan will be subject to the limitations of Section 162(m). In addition, it is expected that the application of the transition rule will be of limited future value with respect to the preservation of deductions for compensation payable to covered employees in excess of the Section 162(m) limits. In any event, the Compensation Committee reserves the right to modify compensation that was initially intended to be exempt from Section 162(m) if it determines that such modifications are consistent with the company’s business needs.

Equity Compensation Plan Information

The following table provides information as of March 31, 2021 with respect to the shares of our common stock that may be issuable upon the exercise of options, warrants and rights.

Plan Category

Number of Securities to be
Issued Upon Exercise of
Outstanding Options,
Warrants and Rights
(a)

Weighted-Average
Exercise Price of
Outstanding
Options, Warrants
and Rights
(b)

SEC Form DEF 14A filed by Commvault Systems, Inc.