Form 4: Rimini Street Executive David Rowe Acquires Performance Units

David W. Rowe, EVP at Rimini Street, acquired 46,106 performance units convertible to common stock based on the company's 2023 financial performance.

Summary

• On February 28, 2024, David W. Rowe, an Executive Vice President at Rimini Street, acquired 46,106 performance units.
• These performance units are convertible into shares of Rimini Street common stock.
• The acquisition is tied to the company's achievement of target adjusted EBITDA and total revenue goals for fiscal year 2023.
• The performance units will vest in three equal installments on April 3, 2024, April 3, 2025, and April 3, 2026, contingent upon Rowe's continued service with the company.

Sentiment

Score: 7

Explanation: The sentiment is moderately positive as it reflects the achievement of financial targets and incentivizes executive performance, but it's also a standard practice.

Positives

• The vesting of performance units is tied to the company's financial performance, aligning executive compensation with company goals.
• The staggered vesting schedule encourages continued service and commitment from the executive.

Risks

• The value of the performance units is dependent on the future stock price of Rimini Street, which is subject to market fluctuations.
• The executive must remain employed with the company through the vesting dates to receive the shares.

Future Outlook

The performance units will vest over the next three years, contingent on continued service, aligning executive incentives with long-term company performance.

Industry Context

This type of equity compensation is common in the tech industry to incentivize executives and align their interests with those of shareholders.

Comparison to Industry Standards

• Companies like Oracle and SAP also use performance-based equity compensation to motivate their executives.
• The vesting schedules and performance metrics used by Rimini Street are similar to those used by other companies in the software industry.

Stakeholder Impact

• Shareholders may view this positively as it aligns executive compensation with company performance.
• Employees may be motivated by the company's achievement of financial targets.

Next Steps

• The performance units will vest in three equal installments on April 3, 2024, April 3, 2025 and April 3, 2026, subject to continued service.

Key Dates