Form 4: Reservoir Media Director Stephen Cook Boosts Stake with Deferred Stock Units

Stephen M. Cook, a Director at Reservoir Media, Inc., increased his beneficial ownership by acquiring 684 Deferred Stock Units as part of his quarterly compensation, demonstrating continued alignment with shareholder interests.

Summary

• Stephen M. Cook, a Director of Reservoir Media, Inc. (RSVR), acquired 684 Deferred Stock Units (DSUs) on June 6, 2025.
• The DSUs were awarded under the Reservoir Media, Inc. 2021 Omnibus Incentive Plan.
• Each DSU is economically equivalent to one share of common stock ($0.0001 par value) of Reservoir Media, Inc.
• Mr. Cook elected to receive these DSUs in lieu of cash for his quarterly compensation as a non-employee director.
• The number of DSUs received was calculated based on the closing price of the Issuer's Common Stock, which was $7.30 on the date of grant.
• These DSUs will be settled in shares of Common Stock on July 28, 2026.
• Following this transaction, Stephen M. Cook directly beneficially owns 933,698 shares of common stock.
• Additionally, 226,089 shares are indirectly owned by BTCSJC Music LLC.

Sentiment

Score: 7

Explanation: The sentiment is moderately positive. While a routine compensation event, the director's choice to take equity over cash signals confidence in the company's future and aligns their interests with shareholders, which is generally viewed favorably.

Positives

• The acquisition of Deferred Stock Units by a director in lieu of cash compensation indicates strong alignment of management's interests with those of shareholders, as their compensation is tied to the company's future stock performance.
• The transaction is part of a pre-existing incentive plan (2021 Omnibus Incentive Plan), suggesting a structured and transparent approach to executive and director compensation.

Risks

• The value of the acquired Deferred Stock Units is subject to the future market price of Reservoir Media, Inc.'s common stock, meaning the ultimate value realized by the director could be lower than the grant price if the stock declines.

Future Outlook

The Deferred Stock Units acquired by Director Stephen M. Cook are scheduled to be settled in shares of Common Stock on July 28, 2026, indicating a future conversion event for these equity awards.

Management Comments

• The Reporting Person elected to receive payment of their quarterly compensation in DSUs in lieu of cash, demonstrating a preference for equity-based compensation aligned with the company's long-term performance.

Industry Context

This Form 4 filing reflects a common practice in corporate governance where non-employee directors receive a portion of their compensation in equity, such as Deferred Stock Units. This aligns their financial interests with those of long-term shareholders, a trend widely adopted across various industries to foster commitment and incentivize performance.

Comparison to Industry Standards

• The practice of compensating non-employee directors with equity, specifically Deferred Stock Units, is a standard corporate governance practice across many publicly traded companies, including those in the media and entertainment sectors like Reservoir Media.
• Companies such as Warner Music Group (WMG) and Universal Music Group (UMG) also utilize equity-based compensation plans for their directors and executives to align interests with shareholders.
• The election by a director to receive DSUs in lieu of cash is often viewed positively, as it signifies confidence in the company's future prospects and a commitment to long-term value creation, a benchmark for strong corporate leadership.

Corporate Governance

Related Party Transactions

• Stephen M. Cook indirectly beneficially owns 226,089 shares of common stock through BTCSJC Music LLC, indicating a related entity's ownership.

Stakeholder Impact

• Shareholders: The director's decision to accept equity compensation instead of cash can be seen as a positive signal, indicating confidence in the company's future and aligning management's interests with shareholder returns.
• Employees: No direct impact mentioned, but a strong governance structure and aligned leadership can indirectly benefit employee morale and stability.

Next Steps

• The Deferred Stock Units acquired by Stephen M. Cook are scheduled to be settled in shares of Common Stock on July 28, 2026.

Key Dates

Keywords

Reservoir Media, RSVR, Stephen M. Cook, Form 4, SEC filing, insider transaction, beneficial ownership, deferred stock units, DSUs, equity compensation, director compensation, stock ownership, corporate governance