Form 4: Red Violet President's Stock Transactions and RSU Grant

Red Violet's President, James Patrick Reilly, reported the disposition of shares for tax obligations and the grant of new restricted stock units.

Summary

• James Patrick Reilly, President of Red Violet, Inc. (RDVT), reported transactions on December 19, 2025.
• Reilly disposed of 5,247 shares of common stock at a price of $55.87 per share to cover tax obligations upon the vesting of a tranche of restricted stock units (RSUs).
• Reilly received a new grant of 18,520 RSUs, convertible into common stock on a one-for-one basis.
• Following these transactions, Reilly beneficially owns 244,351 shares of common stock.
• The reported beneficial ownership includes 13,333 RSUs granted on November 30, 2023, vesting on December 1, 2026.
• It also includes 21,000 RSUs granted on November 4, 2024, vesting in two equal installments on November 1, 2026, and November 1, 2027.
• The newly granted 18,520 RSUs will vest in three equal installments on December 1, 2026, December 1, 2027, and December 1, 2028.

Sentiment

Score: 5

Explanation: The filing details routine insider transactions related to executive compensation (RSU vesting, tax disposition, and new RSU grant), which are neutral in sentiment and do not indicate significant positive or negative developments for the company.

Positives

• The grant of 18,520 new Restricted Stock Units (RSUs) to the President indicates continued alignment of management incentives with shareholder interests and confidence in future performance.

Negatives

• The disposition of 5,247 shares was for tax obligations upon RSU vesting, which is a routine event and not indicative of a negative outlook on the company.

Future Outlook

The future outlook, as indicated by the RSU grants, suggests a long-term incentive structure for the President, with vesting schedules extending through December 2028, subject to accelerated vesting under certain circumstances.

Industry Context

This filing reflects a standard practice in executive compensation within publicly traded companies, where restricted stock units are granted as incentives and a portion of vested shares are often sold to cover tax liabilities. The grant of new RSUs is a common mechanism to align executive interests with long-term shareholder value creation.

Comparison to Industry Standards

• The use of Restricted Stock Units (RSUs) as a component of executive compensation is a widely adopted practice across various industries, including technology and data analytics, aligning with global benchmarks for performance-based incentives.
• The disposition of shares to satisfy tax withholding obligations upon RSU vesting is a routine and expected event for executives receiving equity compensation, consistent with practices observed in companies like Palantir Technologies (PLTR) or Verisk Analytics (VRSK) where similar equity compensation structures are prevalent.

Stakeholder Impact

• Shareholders: The RSU grant aligns the President's long-term interests with shareholder value, while the tax-related disposition is a standard, non-dilutive event.
• Employees: The compensation structure for the President may reflect broader company-wide compensation philosophies, potentially influencing employee morale and retention.

Next Steps

• Future vesting of 13,333 RSUs on December 1, 2026.
• Future vesting of 21,000 RSUs in two equal installments on November 1, 2026, and November 1, 2027.
• Future vesting of 18,520 RSUs in three equal installments on December 1, 2026, December 1, 2027, and December 1, 2028.

Key Dates

Keywords

Red Violet, RDVT, Form 4, Insider Transaction, Restricted Stock Units, RSU Grant, Executive Compensation, Stock Disposition