Form 4: Reservoir Media Director Adam Rothstein Acquires Deferred Stock Units as Compensation

Reservoir Media, Inc. Director Adam Rothstein acquired 684 Deferred Stock Units (DSUs) as part of his quarterly compensation, electing to receive equity instead of cash.

Summary

• Adam Rothstein, a Director of Reservoir Media, Inc. (RSVR), acquired 684 Deferred Stock Units (DSUs) on June 6, 2025.
• These DSUs were awarded under the Reservoir Media, Inc. 2021 Omnibus Incentive Plan as part of his quarterly compensation for service as a non-employee director.
• Mr. Rothstein elected to receive these DSUs in lieu of cash compensation.
• Each DSU is the economic equivalent of one share of common stock and was valued at $7.30, which was the closing price of RSVR common stock on the grant date.
• The DSUs will be settled in shares of common stock on January 1, 2026.
• Following this transaction, Mr. Rothstein beneficially owns 289,453 shares of common stock directly.

Sentiment

Score: 7

Explanation: The acquisition of DSUs by a director, especially in lieu of cash, generally indicates confidence in the company's future and aligns management interests with shareholders, which is a positive signal. However, it's a routine compensation event, not a major strategic announcement.

Positives

• A director elected to receive equity compensation (Deferred Stock Units) instead of cash, which can signal confidence in the company's future performance.
• The acquisition of DSUs aligns the director's long-term interests with those of shareholders.

Risks

• The future value of the Deferred Stock Units, once settled into common stock, is subject to market fluctuations of Reservoir Media, Inc.'s stock price.

Future Outlook

The Deferred Stock Units acquired by Director Adam Rothstein are scheduled to settle into shares of common stock on January 1, 2026, indicating a future increase in his direct shareholding.

Management Comments

• Adam Rothstein, a non-employee director, elected to receive his quarterly compensation in Deferred Stock Units in lieu of cash, aligning his compensation with the company's equity performance.

Industry Context

This transaction is a standard practice for compensating non-employee directors with equity, aligning their long-term interests with shareholder value. It is common across various industries, including media and entertainment, to use equity-based compensation plans to attract and retain qualified board members.

Comparison to Industry Standards

• The use of Deferred Stock Units (DSUs) for non-employee director compensation is a common practice across publicly traded companies, including those in the media and entertainment sector, such as Warner Music Group (WMG) or Universal Music Group (UMG), which often utilize similar equity-based incentive plans to align director interests with long-term shareholder value.
• The election by a director to receive equity instead of cash for compensation is generally viewed positively, as it demonstrates confidence in the company's future prospects, a trend observed in well-governed companies aiming for strong corporate governance.

Stakeholder Impact

• Shareholders: The acquisition of equity by a director aligns their interests with shareholders, potentially signaling confidence in the company's long-term value.

Next Steps

• The Deferred Stock Units acquired by Adam Rothstein are scheduled to settle into shares of common stock on January 1, 2026.

Key Dates

Keywords

Reservoir Media, RSVR, Adam Rothstein, Form 4, Deferred Stock Units, DSU, Director Compensation, Insider Transaction, Equity Compensation, Stock Award