Form 4: Rithm Capital Corp. CFO Nicola Santoro Jr. Reports Changes in Beneficial Ownership

Chief Financial Officer of Rithm Capital Corp., Nicola Santoro Jr., reports acquisition of dividend equivalent rights and adjustments to holdings of common stock and Class B Profits Units.

Summary

• On July 26, 2024, Nicola Santoro Jr., the CFO of Rithm Capital Corp., reported changes in beneficial ownership.
• Santoro acquired 1,083 shares of common stock due to dividend equivalent rights accrued on existing time-based restricted stock units.
• He also acquired 1,147 Class B Profits Units of Rithm Capital Management LLC (RCM) due to dividend equivalent rights.
• These Class B Profits Units are exchangeable into shares of Common Stock of the Issuer on a one-for-one basis.
• Santoro directly owns 112,611 shares of common stock following the reported transactions, which includes 50,726 unvested restricted stock units.
• He also directly owns 53,694 Class B Profits Units.
• The Class B Profits Units vest in three equal annual installments on February 23 of each of 2025, 2026 and 2027.

Sentiment

Score: 7

Explanation: The document reflects routine insider transactions related to dividend equivalents and vesting schedules, indicating a stable and ongoing commitment from the CFO. This suggests a neutral to slightly positive sentiment.

Positives

• The acquisition of dividend equivalent rights indicates continued investment in the company by its CFO.
• The vesting schedule of the Class B Profits Units incentivizes long-term employment and performance.

Future Outlook

The document does not contain explicit forward-looking statements, but the vesting schedule of the Class B Profits Units suggests a continued commitment from the CFO to the company's long-term performance.

Industry Context

Form 4 filings are a routine part of corporate governance, providing transparency into the transactions of company insiders. This filing indicates the CFO's continued stake in the company's performance.

Comparison to Industry Standards

• Comparing Rithm Capital's executive compensation structure to peers like Annaly Capital Management (NLY) or AGNC Investment Corp. (AGNC) would provide context on whether the equity-based incentives are standard practice.
• Reviewing similar Form 4 filings from executives at these companies can offer insights into industry norms for insider transactions and equity ownership.

Stakeholder Impact

• Shareholders can view this as a sign of continued alignment between management and shareholder interests.
• Employees may see this as a positive signal regarding the company's stability and commitment to its leadership.

Key Dates