Form 4: Rimini Street Executive Kevin Maddock Acquires Performance Units

Kevin Maddock, EVP and Chief Recurring Revenue Officer of Rimini Street, acquired 46,106 performance units convertible to common stock based on the company's 2023 performance.

Summary

• Kevin Maddock, an executive at Rimini Street, acquired 46,106 performance units on February 28, 2024.
• These performance units are convertible to common stock and were granted under the company's 2023 Long-Term Incentive Plan.
• The 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.
• Vesting is contingent upon Maddock continuing to be a service provider through the applicable vesting date.
• Following the transaction, Maddock directly owns 91,123 shares of common stock and 46,106 performance units.

Sentiment

Score: 7

Explanation: The sentiment is moderately positive as the vesting of performance units indicates the company met its financial targets. The vesting schedule also incentivizes continued service from the executive.

Positives

• The granting of performance units to executives aligns their interests with the company's performance.
• Achievement of target adjusted EBITDA and total revenue goals for fiscal year 2023 suggests positive financial performance for Rimini Street.
• The vesting schedule incentivizes continued service and commitment from the executive.

Risks

• The value of the performance units is contingent on the future stock price of Rimini Street.
• Failure to meet the continued service requirement would result in forfeiture of unvested performance units.

Future Outlook

The performance units are subject to future time-based vesting requirements, indicating an ongoing incentive structure.

Industry Context

Granting performance-based equity compensation is a common practice in the technology industry to incentivize executives and align their interests with shareholder value.

Comparison to Industry Standards

• Many technology companies use performance-based equity compensation, such as restricted stock units (RSUs) or performance shares, to incentivize executives.
• Companies like Oracle and SAP also utilize long-term incentive plans that tie executive compensation to financial performance metrics.
• The specific metrics used, such as adjusted EBITDA and total revenue, are common indicators of financial health and growth in the software industry.

Stakeholder Impact

• Shareholders may view the vesting of performance units positively as it indicates the company achieved its financial targets.
• Employees may be motivated by the company's performance and the executive's continued commitment.
• The vesting of performance units has no immediate impact on customers, suppliers, or creditors.

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