Form 4: Outbrain Director and 10% Owner Shlomo Dovrat Receives 20,000 Restricted Stock Units

Shlomo Dovrat, a Director and 10% Owner of Outbrain Inc., was granted 20,000 restricted stock units as part of the company's long-term incentive plan.

Summary

• Shlomo Dovrat, a Director and 10% Owner of Outbrain Inc. (OB), acquired 20,000 shares of Common Stock on June 5, 2025.
• These shares were granted as Restricted Stock Units (RSUs) under the Issuer's 2021 Long-Term Incentive Plan.
• The RSUs vest in twelve equal increments over a three-year period, with the first increment vesting on the grant date (June 5, 2025).
• Subsequent increments will vest quarterly, starting on September 5, 2025.
• Following this transaction, Shlomo Dovrat directly beneficially owns 70,000 shares of Common Stock.
• Additionally, 6,345,789 shares are indirectly held by Viola Ventures III, L.P., where Mr. Dovrat may have shared voting and investment power due to his affiliation with the Viola Entities.

Sentiment

Score: 7

Explanation: The grant of Restricted Stock Units to a director and 10% owner is a positive sign of alignment between management/insiders and shareholder interests, promoting long-term commitment. While not a direct cash investment, it ties the insider's wealth to the company's stock performance.

Positives

• The grant of 20,000 Restricted Stock Units to a Director and 10% Owner, Shlomo Dovrat, aligns his interests with long-term shareholder value.
• The three-year vesting schedule encourages sustained commitment and performance from a key insider.

Risks

• The value of the granted Restricted Stock Units is tied to the future performance of Outbrain Inc.'s common stock, exposing the recipient to market price fluctuations.

Future Outlook

The grant of Restricted Stock Units with a three-year vesting schedule indicates a long-term incentive for the director, aligning his future compensation with the company's sustained performance.

Industry Context

This is a standard equity compensation practice in the technology and media industry to incentivize and retain key directors and executives, aligning their interests with long-term company performance and shareholder value.

Corporate Governance

Related Party Transactions

• The indirect beneficial ownership of 6,345,789 shares by Viola Ventures III, L.P., where the reporting person, Shlomo Dovrat, may have shared voting and investment power due to his affiliation with the Viola Entities.

Stakeholder Impact

• Shareholders: Increased alignment of a significant insider's interests with long-term shareholder value through equity compensation.

Next Steps

• Continued vesting of the granted Restricted Stock Units in quarterly increments over the next three years.

Key Dates

Recommendation

Keywords

Outbrain Inc., OB, Shlomo Dovrat, Restricted Stock Units, RSU, Insider Ownership, SEC Form 4, Equity Grant, Long-Term Incentive Plan, Director Compensation, 10% Owner