Form 4: Rimini Street EVP Michael Perica Reports Acquisition of Performance Units

Michael L. Perica, EVP & Chief Financial Officer of Rimini Street, Inc., reports the acquisition of 45,344 performance units convertible to common stock based on the company's 2024 performance.

Summary

• Michael L. Perica, the EVP & Chief Financial Officer of Rimini Street, Inc., filed a Form 4 on March 3, 2025, reporting a transaction on February 27, 2025.
• The transaction involves the acquisition of 45,344 performance units, each representing a contingent right to receive one share of Rimini Street's common stock upon vesting.
• These performance units were earned under the company's 2024 Long-Term Incentive Plan, based on Rimini Street's achievement against target Adjusted EBITDA and Total Revenue goals for fiscal year 2024.
• The performance 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, contingent upon Perica's continued service with the company.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive. The vesting of performance units indicates that the company met its financial targets, which is a positive sign. However, it's a routine filing and doesn't necessarily indicate a major shift in the company's outlook.

Positives

• The acquisition of performance units suggests that Rimini Street achieved its target Adjusted EBITDA and Total Revenue performance goals for fiscal year 2024.
• The vesting schedule incentivizes continued service from the EVP & CFO.

Risks

• The value of the performance units is contingent on Rimini Street's stock price and Perica's continued employment with the company.

Future Outlook

The performance units vest over a three-year period, incentivizing continued performance and service from the executive.

Industry Context

Form 4 filings are a routine part of executive compensation and provide transparency into the alignment of management's interests with those of shareholders. The vesting of performance units based on financial performance is a common practice in the industry.

Comparison to Industry Standards

• Equity-based compensation, including performance units, is a standard practice among publicly traded companies like Rimini Street to incentivize executives.
• Companies such as Oracle and SAP, which compete with Rimini Street, also utilize similar long-term incentive plans tied to financial performance metrics.
• The specific metrics used (Adjusted EBITDA and Total Revenue) are common indicators of financial health and growth in the software and IT services industry.

Stakeholder Impact

• Shareholders may view the vesting of performance units positively, as it indicates that the company is achieving its financial goals.
• Employees may be motivated by the company's performance and the potential for future incentives.

Next Steps

• The performance units will vest in three equal installments on May 6, 2025, May 6, 2026, and May 7, 2027, contingent upon continued service.

Key Dates