Rackspace Technology granted CEO Gajen Kandiah equity awards, including 4 million RSUs and 6 million stock options.
Quiver AI Summary
Rackspace Technology announced the grant of significant inducement equity awards to Gajen Kandiah following his appointment as the new CEO on September 4, 2025. Kandiah will receive 4,000,000 restricted stock units (RSUs) and non-qualified stock options for 6,000,000 shares of common stock, with an exercise price aligned to the closing price on the grant date at $1.30 per share. These awards will vest annually in equal installments from 2026 to 2029, contingent on Kandiah's continued employment. The approval of these awards was obtained from a majority of the independent board members, as they serve as an inducement for his employment with the company, adhering to Nasdaq regulations. Rackspace Technology specializes in hybrid cloud and AI solutions, assisting customers in their cloud journey across various technology platforms.
Potential Positives
- Appointment of Gajen Kandiah as the new CEO could bring fresh leadership and strategic direction to Rackspace Technology.
- Inducement equity awards indicate strong commitment to retaining and motivating the new CEO, which can foster stability in leadership.
- The equity awards, including 4,000,000 RSUs and options for 6,000,000 shares, suggest confidence in the company's potential for growth, aligning the CEO's interests with those of shareholders.
Potential Negatives
- The announcement of a new CEO often suggests prior leadership issues, potentially indicating instability or challenges within the company's management.
- The awarding of a significant number of stock options and RSUs to the new CEO may raise concerns about the company's compensation structure and equity distribution, especially if the company's stock performance is under scrutiny.
- The fact that the inducement awards were granted outside of the shareholder-approved equity incentive plan might lead to questions about governance practices and transparency within the company.
FAQ
Who is the new CEO of Rackspace Technology?
The new CEO of Rackspace Technology is Gajen Kandiah, appointed on September 4, 2025.
What equity awards were granted to Gajen Kandiah?
Gajen Kandiah was granted 4,000,000 RSUs and stock options for 6,000,000 shares of the company’s common stock.
What is the exercise price for the stock options?
The exercise price for the stock options is $1.30 per share, equal to the closing price on the grant date.
When do the equity awards vest for Mr. Kandiah?
The equity awards vest in equal annual installments on September 3rd from 2026 to 2029, subject to his continued employment.
How were the equity awards approved?
The equity awards were approved by a majority of the independent members of the company's board of directors, outside the shareholder-approved plan.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$RXT Insider Trading Activity
$RXT insiders have traded $RXT stock on the open market 4 times in the past 6 months. Of those trades, 0 have been purchases and 4 have been sales.
Here’s a breakdown of recent trading of $RXT stock by insiders over the last 6 months:
- AMAR MALETIRA (Chief Executive Officer) sold 521,840 shares for an estimated $975,840
- DHARMENDRA KUMAR SINHA (EVP, President, Public Cloud) sold 176,374 shares for an estimated $329,819
- SRINI KOUSHIK (President, Technology) sold 73,972 shares for an estimated $138,327
- MARK A. MARINO (Chief Financial Officer) sold 20,217 shares for an estimated $37,805
To track insider transactions, check out Quiver Quantitative's insider trading dashboard.
$RXT Hedge Fund Activity
We have seen 55 institutional investors add shares of $RXT stock to their portfolio, and 59 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- APOLLO MANAGEMENT HOLDINGS, L.P. added 129,609,000 shares (+100.0%) to their portfolio in Q2 2025, for an estimated $165,899,520
- MACKENZIE FINANCIAL CORP removed 2,184,821 shares (-97.0%) from their portfolio in Q2 2025, for an estimated $2,796,570
- BLACKROCK, INC. added 622,184 shares (+12.3%) to their portfolio in Q2 2025, for an estimated $796,395
- GSA CAPITAL PARTNERS LLP added 600,648 shares (+234.9%) to their portfolio in Q2 2025, for an estimated $768,829
- RENAISSANCE TECHNOLOGIES LLC removed 532,107 shares (-21.0%) from their portfolio in Q2 2025, for an estimated $681,096
- VANGUARD GROUP INC added 496,117 shares (+9.1%) to their portfolio in Q2 2025, for an estimated $635,029
- D. E. SHAW & CO., INC. removed 360,979 shares (-35.6%) from their portfolio in Q2 2025, for an estimated $462,053
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
$RXT Analyst Ratings
Wall Street analysts have issued reports on $RXT in the last several months. We have seen 0 firms issue buy ratings on the stock, and 1 firms issue sell ratings.
Here are some recent analyst ratings:
- Barclays issued a "Underweight" rating on 04/25/2025
To track analyst ratings and price targets for $RXT, check out Quiver Quantitative's $RXT forecast page.
$RXT Price Targets
Multiple analysts have issued price targets for $RXT recently. We have seen 4 analysts offer price targets for $RXT in the last 6 months, with a median target of $1.65.
Here are some recent targets:
- Keith Bachman from BMO Capital set a target price of $1.4 on 08/12/2025
- Daniel Perlin from RBC Capital set a target price of $2.0 on 05/12/2025
- Kevin Mcveigh from UBS set a target price of $1.9 on 05/09/2025
- Ramsey El-Assal from Barclays set a target price of $1.0 on 04/25/2025
Full Release
SAN ANTONIO, Sept. 05, 2025 (GLOBE NEWSWIRE) -- Rackspace Technology® (NASDAQ: RXT), a global provider of hybrid cloud and AI solutions, today announced that on September 4, 2025, the Company granted inducement equity awards to Gajen Kandiah in connection with his appointment as the Company’s new Chief Executive Officer.
Mr. Kandiah received 4,000,000 restricted stock units (RSUs) and non-qualified stock options to purchase 6,000,000 shares of the Company’s common stock. The stock options have an exercise price of $1.30 per share, which is equal to the closing price of the Company’s common stock on the grant date, and a maximum ten-year term. The RSUs and stock options vest in equal annual installments on each of September 3, 2026, 2027, 2028 and 2029, generally subject to Mr. Kandiah’s continued employment through the respective vesting dates.
In accordance with Nasdaq Listing Rule 5635(c)(4), the equity awards were an inducement material to Mr. Kandiah’s entering into employment with the Company. The awards were approved by a majority of the independent members of the Company’s board of directors outside of the Company’s shareholder-approved equity incentive plan.
About Rackspace Technology
Rackspace Technology is a leading provider of end-to-end hybrid multicloud technology services and AI solutions company. We design, build, and operate our customers’ cloud environments across all major technology platforms, irrespective of technology stack or deployment model. We partner with our customers at every stage of their cloud journey, enabling them to modernize applications, build new products, and adopt innovative technologies.
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