Form 4: Rimini Street CFO Michael Perica Exercises Stock Options and Performance Units

EVP & Chief Financial Officer of Rimini Street, Michael L. Perica, reports the vesting and conversion of restricted stock units and performance units into common stock.

Summary

• Michael L. Perica, the EVP & Chief Financial Officer of Rimini Street, Inc., executed transactions involving restricted stock units and performance units on April 3, 2024.
• Specifically, 16,963 restricted stock units and 51,228 performance units vested and were converted into common stock.
• These transactions resulted in Mr. Perica directly owning 172,105 shares of Rimini Street common stock.
• The vesting of these units is tied to his continued service as a provider under the company's 2013 Equity Incentive Plan and the 2023 Long-Term Incentive Plan, with remaining units vesting in the future.

Sentiment

Score: 7

Explanation: The sentiment is moderately positive as the vesting of performance units indicates the company met its financial targets. The continued vesting schedule also suggests stability in management.

Positives

• The vesting of performance units suggests that Rimini Street achieved its target adjusted EBITDA and total revenue goals for fiscal year 2023.
• The vesting of restricted stock units and performance units aligns management's interests with those of shareholders.

Risks

• Future vesting of remaining units is contingent on Mr. Perica's continued service, creating a potential risk if he were to leave the company.

Future Outlook

Remaining restricted stock units and performance units will vest ratably on April 3, 2025, and April 3, 2026, contingent on continued service.

Industry Context

Executive compensation through stock options and performance-based units is a common practice in the technology industry to incentivize performance and align management interests with shareholder value.

Comparison to Industry Standards

• Companies like Oracle and SAP also utilize stock options and performance-based compensation for their executives.
• The specific vesting schedules and performance metrics vary depending on the company's size, growth stage, and strategic priorities.
• 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 vesting of performance units positively, as it indicates the company achieved its financial goals.
• Employees may be motivated by the company's achievement of its targets, which led to the vesting of performance units.

Key Dates