secwatch.observer — SEC 8-K summary
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Issuer:     Cloudflare, Inc. (NET)
CIK:        0001477333
Form:       8-K
Filed at:   2021-12-27T23:59:59+00:00
Accession:  0001193125-21-367029
Event type: other
Sentiment:  neutral
Materiality: 0.55
Item codes: 8.01, 9.01
LLM model:  deepseek-v4-flash:cloud@v2

Cloudflare grants 10-year performance stock options to co-founders; stock price targets up to $979
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- Co-founders Prince (CEO) and Zatlyn (COO) each receive an option for 3.96M shares (1.22% of outstanding).
- Options vest upon stock price milestones: first at $156, final at $979 (~616% above $136.81 grant-date close).
- Subject to disinterested stockholder approval at 2022 meeting; forfeited if not approved by Dec 22, 2022.
- Options expire Dec 21, 2031; exercise price $136.81; 10-year term; eight tranches back-weighted for higher targets.
- Compensation Committee set targets based on $120 share price (stock was ~$54 when planning began).

Source:
  EDGAR index:    https://www.sec.gov/Archives/edgar/data/1477333/000119312521367029/0001193125-21-367029-index.htm
  Primary doc:    https://www.sec.gov/Archives/edgar/data/1477333/000119312521367029/d239536d8k.htm
  HTML page:      https://secwatch.observer/filing/0001193125-21-367029

License: Source filings: public domain (SEC EDGAR). Summaries (headline + bullets): CC-BY-4.0; attribute https://secwatch.observer