In a recent development, Zscaler, Inc. (NASDAQ:ZS), a leader in cloud security with a market capitalization of $29.1 billion and impressive revenue growth of 31% year-over-year, announced the amendment and restatement of its 2018 Equity Incentive Plan following approval from its stockholders.
According to InvestingPro data, while the company maintains strong gross margins of 78%, it is currently working toward achieving consistent profitability. The decision, which took place during the Annual Meeting of Stockholders on Thursday, eliminates the original 10-year term of the plan, allowing for more flexible and long-term incentive awards for executives, employees, directors, and consultants.
The updated incentive plan, now termed the Amended and Restated 2018 Plan (A&R Plan), facilitates the grant of various stock-related awards, including nonstatutory stock options and restricted stock units, with time-based and performance-based vesting conditions. While the specifics of future awards are yet to be determined, they will align with the newly amended plan and are subject to approval by the company’s compensation committee.
In addition to the incentive plan amendment, stockholders elected three Class I directors to serve until the 2027 annual meeting or until their successors are elected. The election results were clear, with Karen Blasing receiving the highest number of "for" votes, followed by Eileen Naughton and Charles Giancarlo.
The meeting also saw the ratification of PricewaterhouseCoopers LLP as Zscaler’s independent registered public accounting firm for the fiscal year ending July 31, 2025, and a non-binding advisory approval of the compensation of the company’s named executive officers.
This news is based on a press release statement and highlights the key decisions made by Zscaler’s stockholders, which could influence the company’s governance and compensation strategies moving forward.
In other recent news, Zscaler, a cloud-based security services provider, has been the subject of several significant updates.
Bernstein SocGen Group maintained a positive stance on Zscaler shares, reiterating an Outperform rating despite a decrease in billings growth last quarter. In addition, Nokia (HE:NOKIA) has adopted Zscaler’s Zero Trust Exchange platform to enhance its cloud capabilities and operational efficiency. The shift aligns with Nokia’s strategic modernization towards an identity-based, location-independent access model.
Furthermore, following the 2025 CIO Survey, Piper Sandler analysts revealed a strong outlook for IT spending, suggesting that Zscaler is well-positioned to benefit from the increased focus on cloud and data security. BMO Capital Markets also maintained an Outperform rating on Zscaler’s stock, raising its price target to $222 from the previous $197. This adjustment follows Zscaler’s recent earnings report, which revealed a modest surpassing of billings estimates for the October quarter.
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