Hudson Global announces executive compensation plan

Hudson (NYSE:HUD) Global, Inc., a provider of specialized recruitment and talent management services with a market capitalization of $35.89 million, has disclosed its executive compensation plan for the year ending December 31, 2025. According to InvestingPro data, the company maintains a strong financial position with a current ratio of 3.27, indicating robust liquidity. The 8-K filing, released today, details the incentive compensation plan for its top executives, including the CEO and CFO.

The Compensation Committee of Hudson Global’s Board of Directors established the 2025 CEO/CFO Incentive Compensation Plan on January 24, 2025. The plan is structured to reward the Chief Executive Officer, Jeffrey E. Eberwein, and Chief Financial Officer, Matthew K. Diamond, for achieving specific corporate objectives. This comes as the company faces challenges, with revenue declining 17.86% in the last twelve months and an EBITDA of -$3.67 million. The target cash incentive for both executives is set at $100,000 each. Additionally, the target for restricted stock unit (RSU) grants is $470,000 for the CEO and $150,000 for the CFO. The actual payouts will be determined by the company’s 2025 performance, particularly its earnings before interest, taxes, depreciation, and amortization (EBITDA), which must surpass set thresholds.

The incentive plan also outlines compensation for Jake Zabkowicz, the Global Chief Executive Officer at Hudson RPO Holdings LLC, a wholly owned subsidiary of Hudson Global. Zabkowicz’s cash bonus payments are contingent upon meeting net revenue and EBITDA targets as per his employment agreement.

Furthermore, the Compensation Committee approved the 2025 Incentive Compensation Program for other executives at Hudson Global. This program sets targets for bonus eligibility based on the achievement of certain group and division objectives.

These incentive programs are part of Hudson Global’s strategy to align executive compensation with company performance and shareholder interests. The company, headquartered in Old Greenwich, Connecticut, is listed on the NASDAQ Stock Market under the ticker symbol (NASDAQ:HSON). InvestingPro analysis suggests the stock is currently undervalued, despite experiencing a significant 28.16% decline over the past six months. For deeper insights into Hudson Global’s valuation and financial health, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.

The information provided in this article is based on a press release statement from Hudson Global, Inc. and serves to inform stakeholders of the company’s latest executive compensation structure.

In other recent news, Hudson Global reported a decrease in its Q3 2024 earnings. The company’s revenue fell to $36.9 million, an 8% year-over-year decline, and its adjusted net revenue was $18.6 million, down 5% from the previous year. The company also reported a net loss of $0.8 million, a significant drop from the net income of $0.5 million in the same quarter of the previous year. Adjusted EBITDA also declined to $0.8 million from $2 million in Q3 of the previous year.

Despite these challenges, Hudson Global remains positive about future quarters, citing new business wins and ongoing cost-saving initiatives. The company also made strategic hires to enhance its geographical reach and service offerings. However, the Asia Pacific business saw a significant decrease in revenue and adjusted net revenue, 15% and 11% respectively. The company continues to explore acquisition opportunities that would enhance its service offerings or geographical presence. These are some of the recent developments at Hudson Global.

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