Form 4: HireQuest Director Receives Stock Compensation

HireQuest Director R. Rimmy Malhotra was awarded 3,568 shares of restricted stock as compensation for Board services, vesting in 2026 and 2027.

Summary

• R. Rimmy Malhotra, a Director of HireQuest, Inc. (HQI), acquired 3,568 shares of common stock on November 7, 2025.
• These shares are restricted stock awarded as compensation for Board of Director services, specifically in-lieu of a quarterly cash retainer.
• Of the awarded shares, 2,974 will vest on February 7, 2026, and the remaining 594 shares will vest on November 7, 2027.
• The closing price of HireQuest's Common Stock on Nasdaq on the grant date was $9.67 per share.
• Following this transaction, Mr. Malhotra directly beneficially owns 100,440 shares of common stock.
• Mr. Malhotra also indirectly beneficially owns 120,130 shares through Nicoya Fund, LLC, where he is a managing member of its managing member, Nicoya Capital, LLC, disclaiming beneficial ownership except for his pecuniary interest.

Sentiment

Score: 6

Explanation: Slightly positive, as it indicates standard corporate governance practices and aligns director interests with shareholders, without any negative implications for the company's financial health.

Positives

• The award of restricted stock aligns the Director's financial interests with those of the shareholders, promoting long-term value creation.
• Compensating directors with equity rather than cash can conserve company liquidity.

Negatives

• No immediate cash compensation for the director, which might be a negative for some individuals, though common practice.

Future Outlook

The filing does not contain specific forward-looking statements or guidance regarding the company's future performance, beyond the vesting schedule of the awarded shares.

Industry Context

Compensating directors with restricted stock is a common practice across various industries, particularly in publicly traded companies, to align the interests of board members with long-term shareholder value. This practice is standard for director services.

Comparison to Industry Standards

• The use of restricted stock as compensation for Board services is a widely accepted practice, aligning with corporate governance best practices that encourage long-term commitment and performance from directors.
• Many companies, including peers in the staffing and human resources industry, utilize equity-based compensation for non-employee directors to foster a shareholder-centric perspective.

Corporate Governance

Related Party Transactions

• R. Rimmy Malhotra indirectly beneficially owns 120,130 shares through Nicoya Fund, LLC. Mr. Malhotra is the managing member of Nicoya Capital, LLC, which is the managing member of Nicoya Fund, LLC. He disclaims beneficial ownership of these shares except to the extent of his pecuniary interest therein.

Stakeholder Impact

• Shareholders: The equity award aligns the Director's interests with long-term shareholder value.
• Employees: No direct impact on employees is indicated by this filing.
• Customers/Suppliers/Creditors: No direct impact on these stakeholders is indicated by this filing.

Next Steps

• 2,974 shares of restricted stock are scheduled to vest on February 7, 2026.
• 594 shares of restricted stock are scheduled to vest on November 7, 2027.

Key Dates

Keywords

HireQuest, HQI, R. Rimmy Malhotra, Director Compensation, Restricted Stock, Insider Transaction, SEC Form 4, Corporate Governance, Equity Award