Form 4: Rapid7 Executive Receives Stock Grant Upon Appointment as Chief Accounting Officer

Scott M. Murphy, Rapid7's new Chief Accounting Officer, received a grant of 13,974 restricted stock units on March 4, 2024, as part of his compensation.

Summary

• Scott M. Murphy, the Chief Accounting Officer of Rapid7, Inc., was granted 13,974 restricted stock units on March 4, 2024.
• These units were granted under the company's 2015 Equity Incentive Plan, as amended.
• Each restricted stock unit represents the right to receive one share of Rapid7 common stock.
• The grant vests over three years, with 33% vesting on April 15, 2025, and the remaining 8.33% vesting quarterly thereafter, contingent upon continued service with the company.

Sentiment

Score: 7

Explanation: The document reflects a standard executive compensation practice, which is generally viewed neutrally to positively as it aligns management interests with shareholders.

Positives

• The grant of restricted stock units aligns the executive's interests with those of the shareholders.
• The vesting schedule encourages long-term commitment from the Chief Accounting Officer.

Risks

• The value of the restricted stock units is dependent on the future performance of Rapid7's stock.
• If the executive leaves the company before the units fully vest, they will forfeit the unvested portion.

Future Outlook

The document does not contain specific forward-looking statements beyond the vesting schedule of the restricted stock units.

Industry Context

Stock grants are a common practice in the technology industry to attract and retain key executives. The vesting schedule is typical for such grants.

Comparison to Industry Standards

• Equity compensation is a standard practice among publicly traded technology companies like Rapid7 to incentivize executives.
• Companies such as CrowdStrike, Okta, and Zscaler also utilize restricted stock units with similar vesting schedules to align executive compensation with long-term shareholder value.
• Vesting schedules of three to four years are common, with some companies offering performance-based vesting in addition to time-based vesting.

Management Changes

Stakeholder Impact

• Shareholders may view the stock grant positively as it incentivizes the Chief Accounting Officer to contribute to the company's long-term success.
• Employees may see this as a positive sign of investment in leadership.

Key Dates