Form 4: Rimini Street CEO Seth Ravin Acquires Performance Units Based on 2024 Financial Goals

Rimini Street's CEO, Seth Ravin, acquired 136,032 performance units based on the company's 2024 Adjusted EBITDA and Total Revenue performance, as reported in a Form 4 filing.

Summary

• Seth Ravin, the President, CEO & Chairman of Rimini Street, Inc., has acquired 136,032 performance units.
• This transaction was reported in a Form 4 filing with the SEC on March 3, 2025.
• The performance units were granted based on Rimini Street's achievement against target Adjusted EBITDA and Total Revenue performance goals for fiscal year 2024.
• These units are subject to additional time-based vesting requirements, vesting in three equal installments on May 6, 2025, May 6, 2026, and May 7, 2027.
• Vesting is contingent upon Ravin continuing to be a Service Provider through the applicable vesting date.
• Ravin also beneficially owns 444,914 shares of common stock directly and 10,491,309 shares indirectly through the SAR Trust.

Sentiment

Score: 7

Explanation: The sentiment is moderately positive as the CEO is receiving performance-based compensation tied to the company's financial performance, suggesting confidence in future results. The vesting schedule also indicates a long-term commitment.

Positives

• The acquisition of performance units by the CEO suggests confidence in the company's future performance.
• Achievement of Adjusted EBITDA and Total Revenue targets for fiscal year 2024 is a positive indicator for the company's financial health.

Risks

• The vesting of the performance units is contingent upon the CEO's continued service, creating a potential risk if he were to leave the company.
• Future performance may not meet expectations, potentially impacting the value of the performance units.

Future Outlook

The performance units vest over a three-year period, indicating a long-term incentive for the CEO to drive company performance.

Industry Context

In the software and IT services industry, performance-based compensation is a common practice to align management's interests with those of shareholders. The use of Adjusted EBITDA and Total Revenue as metrics reflects a focus on profitability and growth.

Comparison to Industry Standards

• Companies like Salesforce, Oracle, and SAP also use performance-based equity compensation for their executives.
• The specific metrics and vesting schedules vary, but the overall goal is to incentivize long-term value creation.
• Rimini Street's use of Adjusted EBITDA and Total Revenue is consistent with industry practices for measuring financial performance.

Stakeholder Impact

• Shareholders may view the performance-based compensation positively, as it aligns management's interests with theirs.
• Employees may be motivated by the company's achievement of financial targets.
• Customers and suppliers may benefit from the company's continued growth and profitability.

Next Steps

• Monitor the company's performance against future financial targets.
• Track the vesting of the performance units over the next three years.

Key Dates