Form 4: Rapid7 Director Wael Mohamed Granted 1,338 Restricted Stock Units

Rapid7, Inc. Director Wael Mohamed was granted 1,338 restricted stock units on June 11, 2025, increasing his beneficial ownership to 16,197 shares.

Summary

• Wael Mohamed, a Director of Rapid7, Inc. (RPD), acquired 1,338 shares of common stock through a restricted stock unit (RSU) grant.
• The transaction occurred on June 11, 2025.
• These restricted stock units represent a contingent right to receive one share of common stock of the Issuer per unit.
• The RSUs were granted at a price of $0, which is typical for equity compensation awards.
• Following this acquisition, Mr. Mohamed's total beneficial ownership in Rapid7, Inc. stands at 16,197 shares.
• The granted RSUs are scheduled to vest in full on the earlier of the Issuer's next annual meeting of stockholders held after the grant date or the first anniversary of the grant date, subject to Mr. Mohamed's continued service with the Issuer.

Sentiment

Score: 7

Explanation: The grant of restricted stock units to a director is a positive signal of alignment and commitment, reinforcing confidence in the company's leadership. While routine, it contributes positively to governance and incentive structures.

Positives

• The grant of restricted stock units aligns the director's financial interests with those of the shareholders, incentivizing long-term performance.
• The increase in beneficial ownership demonstrates continued commitment and confidence from a key director in the company's future.

Risks

• The vesting of the 1,338 restricted stock units is contingent upon the reporting person's continued service with Rapid7, Inc. through the applicable vesting date.

Future Outlook

The vesting schedule for the restricted stock units indicates future share issuance contingent on the director's continued service, aligning his long-term commitment with the company's performance.

Industry Context

This Form 4 filing details a routine insider transaction involving an equity grant to a director. Such grants, particularly restricted stock units, are a common form of compensation in the technology and cybersecurity sectors, designed to align the interests of company leadership with long-term shareholder value creation. This practice is standard across publicly traded companies to attract and retain executive talent.

Comparison to Industry Standards

• Equity compensation, such as the grant of restricted stock units to directors, is a standard and widely adopted practice across industries, including the cybersecurity sector where Rapid7 operates.
• The structure of the RSU grant, with vesting tied to continued service and specific timeframes (annual meeting or one-year anniversary), is consistent with typical corporate governance practices aimed at incentivizing long-term commitment.
• While the specific number of units granted would typically be benchmarked against director compensation packages at peer companies within the cybersecurity industry, this document does not provide comparative data to assess if this grant is above, below, or in line with industry averages.

Related Party Transactions

• The grant of 1,338 restricted stock units to Director Wael Mohamed constitutes a related-party transaction, which is a standard component of director compensation packages.

Stakeholder Impact

• Shareholders: The grant aligns the director's interests with shareholders by tying his compensation to the company's stock performance. It also represents potential future dilution upon the vesting of the RSUs.
• Employees: No direct impact on employees is mentioned in this filing.

Next Steps

• Vesting of the 1,338 restricted stock units will occur on the earlier of Rapid7's next annual meeting of stockholders or the first anniversary of the grant date (June 11, 2025), contingent on Director Wael Mohamed's continued service.

Key Dates

Recommendation

Keywords

Rapid7, RPD, Wael Mohamed, Director, Restricted Stock Units, RSU, Equity Grant, Insider Transaction, Form 4, SEC Filing