Form 4: Red Violet Director Strakosch Receives RSU Grant

Red Violet, Inc. Director Greg Strakosch was granted 2,130 restricted stock units, vesting over three years, as part of his board compensation.

Summary

• Director Greg Strakosch received a grant of 2,130 Restricted Stock Units (RSUs) on December 19, 2025, for his service as a member of Red Violet, Inc.'s Board of Directors.
• These RSUs are convertible into common stock on a one-for-one basis and will vest in approximately three equal installments on December 1, 2026, December 1, 2027, and December 1, 2028, subject to accelerated vesting under certain conditions.
• Following this transaction, Strakosch beneficially owns 4,010 RSUs, which includes the newly granted 2,130 RSUs and 1,880 RSUs originally granted on March 4, 2025.
• The previously granted 1,880 RSUs also convert into common stock on a one-for-one basis and vest in three equal installments on March 1, 2026, March 1, 2027, and March 1, 2028.
• The transaction was made pursuant to a contract, instruction, or written plan for the purchase or sale of equity securities of the issuer, intended to satisfy the affirmative defense conditions of Rule 10b5-1(c).

Sentiment

Score: 7

Explanation: The filing reports a standard equity grant to a director, aligning his interests with shareholders. This is a routine corporate governance event and does not indicate any significant positive or negative operational or financial news, thus leaning slightly positive due to good governance.

Positives

• The RSU grant aligns the director's long-term interests with those of the shareholders, promoting sustained commitment to company performance.
• Equity compensation for board members is a standard corporate governance practice, indicating stability in compensation structure.
• The transaction was executed under a Rule 10b5-1 plan, demonstrating a pre-planned and compliant approach to insider equity management.

Negatives

• Potential for minor future share dilution upon the conversion of RSUs into common stock, although this is a typical aspect of equity compensation plans.

Future Outlook

The future outlook includes the scheduled vesting of 2,130 Restricted Stock Units in three equal installments on December 1, 2026, December 1, 2027, and December 1, 2028, and the vesting of 1,880 previously granted RSUs on March 1, 2026, March 1, 2027, and March 1, 2028.

Industry Context

The granting of restricted stock units to directors is a common practice across various industries, including technology and data analytics, to align the long-term interests of board members with those of the company's shareholders. This filing reflects standard corporate compensation practices for board members.

Comparison to Industry Standards

• Equity compensation for directors, such as RSU grants with multi-year vesting, is a widely adopted practice in publicly traded companies, particularly within the technology and data analytics sectors where Red Violet operates.
• While the specific size of grants can vary based on company size, performance, and board responsibilities, the mechanism of using RSUs to incentivize long-term commitment and performance is standard.
• This practice is comparable to compensation strategies observed at peer companies like Verisk Analytics (VRSK) or TransUnion (TRU), which also utilize equity-based compensation for their board members to foster alignment and retention.

Corporate Governance

Related Party Transactions

• The grant of Restricted Stock Units to Director Greg Strakosch constitutes a transaction with a related party (an insider), which is a standard form of compensation for board service.

Stakeholder Impact

• Shareholders: Experience minor potential future dilution upon RSU conversion but benefit from increased alignment of the director's interests with long-term shareholder value.
• Employees: No direct impact is mentioned in this filing.
• Customers: No direct impact is mentioned in this filing.
• Suppliers: No direct impact is mentioned in this filing.
• Creditors: No direct impact is mentioned in this filing.

Next Steps

• Vesting of 2,130 Restricted Stock Units in three equal installments on December 1, 2026, December 1, 2027, and December 1, 2028.
• Vesting of 1,880 Restricted Stock Units in three equal installments on March 1, 2026, March 1, 2027, and March 1, 2028.

Key Dates

Recommendation

This Form 4 filing details a routine equity grant to a director, which is a standard compensation practice aimed at aligning management and shareholder interests. It provides no new information regarding the company's operational performance, financial health, or strategic direction that would warrant a change in investment thesis. Therefore, a 'hold' recommendation is appropriate as this filing alone does not present a catalyst for significant price movement or a re-evaluation of the company's fundamentals.

Keywords

Red Violet, RDVT, Greg Strakosch, Restricted Stock Units, RSU, Director Compensation, Equity Grant, SEC Form 4, Insider Transaction, Corporate Governance, Stock Vesting, Rule 10b5-1