Rapid7 Reports Inducement Grant under Nasdaq Listing Rule 5635(c)(4)

Rhea-AI Summary

Rapid7 (NASDAQ:RPD) granted an inducement award of 525,000 restricted stock units (RSUs) to Chief Product and Technology Officer Dejan Deklich on June 15, 2026, under its 2015 Equity Incentive Plan.

The RSUs vest over three years, contingent on Mr. Deklich’s continued employment and were unanimously approved by the independent Compensation Committee in accordance with Nasdaq Listing Rule 5635(c)(4).

AI-generated analysis. How Rhea-AI works. Not financial advice.

News Market Reaction – RPD

-3.35%

1 alert

-3.35% News Effect

-$17M Valuation Impact

$477.17M Market Cap

6.68K Volume

On the day this news was published, RPD declined 3.35%, reflecting a moderate negative market reaction. This price movement removed approximately $17M from the company's valuation, bringing the market cap to $477.17M at that time.

Data tracked by StockTitan Argus on the day of publication.

What This Means

This announcement details a material inducement grant of 525,000 RSUs over a 3-year schedule to Rapi...

Analysis

This announcement details a material inducement grant of 525,000 RSUs over a 3-year schedule to Rapid7’s Chief Product and Technology Officer under Nasdaq Listing Rule 5635(c)(4). It continues a recent leadership refresh and equity-based compensation activity seen in prior filings. Investors may watch how this hire influences product roadmap, AI-focused initiatives, and future earnings updates rather than treating the grant itself as a fundamental catalyst.

Key Figures

Inducement RSUs: 525,000 RSUs Vesting period: 3 years Initial vesting tranche: 1/3 of RSUs +1 more

4 metrics

Inducement RSUs 525,000 RSUs Grant to Chief Product and Technology Officer on Jun 15, 2026

Vesting period 3 years RSUs vest over three-year period, contingent on continued employment

Initial vesting tranche 1/3 of RSUs Vests on one-year anniversary of vesting commencement date

Remaining vesting 2/3 of RSUs Vests in equal quarterly installments through third anniversary

Historical Context

5 past events · Latest: Jun 01 (Positive)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Jun 01	CEO transition, guidance	Positive	+4.3%	New CEO with reaffirmed 2026 guidance and AI-SOC strategy emphasis.
May 21	Threat report update	Negative	-3.1%	Report highlighting rising vulnerability exploitation and shrinking remediation windows.
May 13	Cyber GRC program	Positive	-5.9%	Launch of Cyber GRC with partner 360 Advanced for compliance workflows.
May 12	Cyber GRC launch	Positive	+3.1%	Early access GRC program unifying security data and compliance workflows.
May 11	Investor conferences	Positive	-7.7%	Planned presentations at major investor conferences with webcast access.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Recent news shows a mixed relationship between headlines and price: CEO transition and some product launches aligned positively with price, while other product and conference updates coincided with selloffs, indicating inconsistent reactions to strategic announcements.

Recent Company History

Over the last few months, Rapid7’s news flow centered on leadership changes, product expansion, and investor outreach. On May 11, conference participation news preceded a -7.68% move. Cyber GRC launches on May 12 and May 13 produced reactions of +3.14% and -5.94%, respectively, underscoring volatility around product strategy. The June 1 CEO appointment with reiterated 2026 guidance led to a +4.3% move. Today’s inducement grant fits this broader leadership refresh and compensation activity.

Regulatory & Risk Context

Short Interest: 12.08%

Short Interest

12.08% of float

0% 15% 30%+

moderate as of 2026-05-29 Days to cover: 3.39

Key Terms

restricted stock units, rsus, equity incentive plan, nasdaq listing rule 5635(c)(4), +1 more

5 terms

restricted stock units financial

"granted an inducement award comprised of 525,000 restricted stock units (“RSUs”) on June 15, 2026"

Restricted stock units are a type of company reward where employees are promised shares of stock, but they only fully own these shares after meeting certain conditions, like staying with the company for a set time. They matter because they can become valuable assets and are often used to motivate employees to help the company succeed.

rsus financial

"The RSUs vest over a three-year period with one-third (1/3) of the RSUs vesting"

RSUs, or restricted stock units, are a form of company shares given to employees as part of their compensation. They are typically awarded with certain restrictions, such as a waiting period before they can be fully owned or sold, similar to earning a gift that becomes fully yours over time. For investors, RSUs can impact a company's stock offerings and reflect how much the company relies on stock-based incentives to attract and retain talent.

equity incentive plan financial

"under Rapid7’s 2015 Equity Incentive Plan, as amended (the “Equity Plan”)"

An equity incentive plan is a program that gives employees, executives or directors the right to receive company stock or options to buy stock as part of their pay. Think of it as offering slices of future company profit to motivate people to boost long‑term performance; for investors it matters because it can align employee goals with shareholder value but also increases the number of shares outstanding, which can dilute existing ownership.

nasdaq listing rule 5635(c)(4) regulatory

"in accordance with Nasdaq Listing Rule 5635(c)(4) as a material inducement"

NASDAQ Listing Rule 5635(c)(4) is a rule that requires a company to get approval from its shareholders before selling a large amount of its shares, usually over 20%. This helps protect investors by making sure the company doesn't flood the market with new shares without their say, which could lower the stock's value.

nasdaq listing rule 5605(a)(2) regulatory

"Compensation Committee, which is independent within the meaning of Nasdaq Listing Rule 5605(a)(2)"

Nasdaq Listing Rule 5605(a)(2) sets the criteria Nasdaq uses to decide whether a company’s board members are independent, listing examples of relationships or ties that would disqualify a director from being considered independent. Investors care because a board with genuinely independent directors acts like an impartial referee overseeing management decisions, reducing conflicts of interest and improving the chance that shareholder interests are protected and corporate decisions are scrutinized effectively.

AI-generated analysis. How Rhea-AI works. Not financial advice.

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google Not now

BOSTON, June 15, 2026 (GLOBE NEWSWIRE) -- Rapid7, Inc. (NASDAQ: RPD), a global leader in AI-powered managed cybersecurity operations, announced that the company granted an inducement award comprised of 525,000 restricted stock units (“RSUs”) on June 15, 2026, to Dejan Deklich, the Company’s Chief Product and Technology Officer, under Rapid7’s 2015 Equity Incentive Plan, as amended (the “Equity Plan”) pursuant to the Equity Plan’s inducement award share pool.

The RSUs vest over a three-year period with one-third (1/3) of the RSUs vesting on the one-year anniversary of the vesting commencement date and the remaining two-thirds (2/3) of the RSUs vesting in equal quarterly installments thereafter through the third anniversary of the vesting commencement date, subject to Mr. Deklich’s continued employment through each applicable vesting date.

The RSUs were unanimously approved by Rapid7’s Compensation Committee, which is independent within the meaning of Nasdaq Listing Rule 5605(a)(2), in accordance with Nasdaq Listing Rule 5635(c)(4) as a material inducement for Mr. Deklich to commence employment with Rapid7.

About Rapid7
Rapid7, Inc. (NASDAQ: RPD) is a global leader in AI-powered managed cybersecurity operations, trusted to advance organizations’ cyber resilience. Open and extensible, the Rapid7 Command Platform integrates security data, enriching it with AI, threat intelligence, and 25 years of expertise and innovation to reduce risk and disrupt attackers. As a recognized leader in preemptive managed detection and response (MDR), Rapid7 unifies exposure and detection to transform the cybersecurity operations of more than 11,500 customers worldwide. For more information, visit our website, check out our blog, or follow us on LinkedIn or X.

Rapid7 Media Relations
Alice Randall
Director, Global Communications
press@rapid7.com
(857) 216-7804

Rapid7 Investor Contact
Matt Wells
Vice President, Investor Relations
investors@rapid7.com
(617) 865-4277

FAQ

What inducement award did Rapid7 (RPD) grant to Dejan Deklich on June 15, 2026?

Rapid7 granted 525,000 restricted stock units (RSUs) to Chief Product and Technology Officer Dejan Deklich as an inducement award. According to Rapid7, the grant was made under its 2015 Equity Incentive Plan’s inducement share pool.

How do the 525,000 RSUs granted by Rapid7 (RPD) to Dejan Deklich vest?

The RSUs vest over three years. One-third vests on the one-year anniversary of the vesting commencement date, with the remaining two-thirds vesting in equal quarterly installments through the third anniversary, subject to continued employment.

Under which plan and Nasdaq rule was Rapid7’s June 15, 2026 RSU inducement grant made?

The RSU inducement grant was made under Rapid7’s 2015 Equity Incentive Plan, using the inducement award share pool. According to Rapid7, it was approved in accordance with Nasdaq Listing Rule 5635(c)(4).

Who approved Rapid7’s 525,000 RSU inducement grant to its Chief Product and Technology Officer?

Rapid7’s Compensation Committee unanimously approved the 525,000 RSU inducement grant. The committee is described as independent under Nasdaq Listing Rule 5605(a)(2) and acted in line with Nasdaq Listing Rule 5635(c)(4).

Why did Rapid7 (RPD) grant an inducement RSU award to Dejan Deklich?

Rapid7 granted the RSU award as a material inducement for Dejan Deklich to commence employment as Chief Product and Technology Officer. According to Rapid7, the award aligns with Nasdaq Listing Rule 5635(c)(4) for inducement grants.