Form 4: Rithm Capital Corp. CFO Nicola Santoro Jr. Reports Acquisition of Dividend Equivalent Rights

Nicola Santoro Jr., CFO of Rithm Capital Corp., reports the acquisition of dividend equivalent rights on existing restricted stock units and Class B Profits Units.

Summary

• On January 31, 2025, Nicola Santoro Jr., the Chief Financial Officer of Rithm Capital Corp., reported transactions related to dividend equivalent rights.
• Santoro acquired 1,128 shares of common stock representing dividend equivalent rights accrued on existing time-based restricted stock units.
• He also acquired 1,194 Class B Profits Units of Rithm Capital Management LLC representing dividend equivalent rights accrued on existing units.
• Additionally, 796 Class B Profits Units were acquired based on the 2024 annual return on equity performance.
• These Class B Profits Units are exchangeable into shares of Common Stock of the Issuer on a one-for-one basis under certain conditions.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive as it reflects standard compensation practices and alignment of management with company performance. There are no indications of negative events or concerns.

Positives

• The acquisition of dividend equivalent rights suggests continued investment and alignment of the CFO's interests with the company's performance.

Future Outlook

The Class B Profits Units vest over time and are exchangeable into common stock, indicating a long-term incentive structure for the CFO.

Industry Context

Form 4 filings are standard practice and provide transparency into the transactions of company insiders, ensuring fair market practices.

Comparison to Industry Standards

• Form 4 filings are a standard regulatory requirement for publicly traded companies in the United States, ensuring transparency in insider trading activities.
• Companies like Blackstone (BX) and Apollo Global Management (APO) also have similar reporting requirements for their executives' transactions.
• The vesting schedules and exchange terms of the Class B Profits Units are common incentive mechanisms used by companies to align management's interests with those of shareholders, similar to practices observed at KKR & Co. (KKR) and The Carlyle Group (CG).

Stakeholder Impact

• The transactions reflect the company's compensation strategy and its impact on executive ownership, which can influence shareholder confidence.

Key Dates

Keywords

Rithm Capital Corp, Nicola Santoro Jr, CFO, dividend equivalent rights, Class B Profits Units, RITM, Form 4, insider trading