Form 4: Rimini Street CEO Seth Ravin Acquires Performance Units Tied to 2023 Financial Goals

Rimini Street's CEO, Seth Ravin, acquired 576,335 performance units based on the company's achievement of adjusted EBITDA and total revenue targets for fiscal year 2023.

Summary

• This Form 4 filing reports changes in beneficial ownership of Rimini Street, Inc. securities by Seth A. Ravin, the company's President, CEO, and Chairman.
• The filing indicates that Ravin acquired 576,335 performance units on February 28, 2024, under the company's 2023 Long-Term Incentive Plan.
• These performance units were earned based on Rimini Street's achievement of target adjusted EBITDA and total revenue goals for fiscal year 2023.
• The performance units are subject to additional time-based vesting requirements, vesting in three equal installments on April 3, 2024, April 3, 2025, and April 3, 2026, contingent upon Ravin's continued service with the company.
• Following the reported transaction, Ravin directly owns 235,122 shares of common stock and indirectly owns 10,491,309 shares through the SAR Trust, in addition to the 576,335 performance units.

Sentiment

Score: 7

Explanation: The sentiment is moderately positive as the CEO's acquisition of performance units indicates the company achieved its financial targets. However, the vesting is subject to continued service and market risks.

Positives

• The acquisition of performance units by the CEO suggests that the company met its adjusted EBITDA and total revenue goals for fiscal year 2023, which is a positive indicator of financial performance.
• The vesting schedule of the performance units incentivizes the CEO to remain with the company for the long term.

Risks

• The value of the performance units is contingent upon the company's stock price, which is subject to market fluctuations.
• The vesting of the performance units is dependent on the CEO's continued service with the company; any departure could impact the vesting schedule.

Future Outlook

The performance units are subject to time-based vesting requirements over the next three years, incentivizing continued performance and service from the CEO.

Industry Context

This filing reflects standard executive compensation practices, where performance-based equity awards are used to align management's interests with those of shareholders and incentivize the achievement of financial goals. The use of adjusted EBITDA and total revenue as metrics is common in the technology industry.

Comparison to Industry Standards

• Companies like Salesforce, Oracle, and SAP also utilize performance-based equity compensation for their executives.
• The specific metrics and vesting schedules vary depending on the company's size, industry, and strategic goals.
• Rimini Street's use of adjusted EBITDA and total revenue as performance metrics is consistent with industry practices focused on profitability and growth.

Stakeholder Impact

• Shareholders may view the achievement of financial targets and the CEO's continued commitment positively.
• Employees may be motivated by the company's success and the CEO's alignment with their interests.

Next Steps

• The performance units will vest in three equal installments on April 3, 2024, April 3, 2025 and April 3, 2026, subject to the Reporting Person continuing to be a Service Provider.

Key Dates