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Spar Group, Inc. (NASDAQ:SGRP), a $26.4 million market cap merchandising and marketing services company, announced several executive leadership changes this week, according to a statement based on a Securities and Exchange Commission filing. The company currently maintains a "Fair" financial health score according to InvestingPro analysis, though it faces challenges with profitability and cash management. InvestingPro analysts have identified several key factors affecting the company’s performance, with additional insights available in the comprehensive Pro Research Report.
On Monday, Michael R. Matacunas notified the company of his immediate resignation as President and his intention to retire and resign as Chief Executive Officer effective October 3, 2025. In connection with his departure, Spar Group and Mr. Matacunas entered into a transition agreement that includes a $2 million retention bonus, the extension of his stock option exercise period for three years after his resignation as CEO, and immediate vesting of restricted stock units issued on May 15, 2025. This leadership change comes as the company faces financial headwinds, with a negative return on assets of -8.4% and operating losses over the last twelve months. The company and Mr. Matacunas also executed a mutual release of claims. As part of this agreement, a prior change in control severance agreement with Mr. Matacunas will terminate, removing a $4 million potential liability from the company.
Following Mr. Matacunas’s resignation as President, William Linnane was appointed President of Spar Group, effective immediately. Previously the company’s Global Strategy & Growth Officer, Mr. Linnane entered into an employment agreement with a base salary of $415,000 and the opportunity to earn an annual bonus up to 100% of his base salary, subject to performance criteria determined by the board. The agreement also provides for eligibility in the company’s equity incentive plan, paid vacation, and other benefits. If terminated without cause or if he resigns for good reason, Mr. Linnane will be eligible for severance equal to one year’s base salary plus his average bonus from the previous two years, as well as up to 12 months of benefits coverage.
The company also reported that Ron Lutz, Global Chief Commercial Officer, and Kori Belzer, Global Chief Operating Officer, have notified Spar Group of their retirements following the elimination of their positions. These organizational changes come as the company’s stock trades near $1.19, significantly below its 52-week high of $2.48. InvestingPro data reveals the company maintains a current ratio of 1.36, indicating sufficient liquidity to meet short-term obligations despite operational challenges. Get deeper insights into SGRP’s financial health and future prospects with an InvestingPro subscription, which includes exclusive access to detailed financial metrics and expert analysis. Mr. Lutz’s last day is Friday, and he will receive total payments of $588,258, including severance and accelerated vesting of phantom shares. He will provide consulting services beginning September 8, 2025, for a monthly fee of $15,000. Ms. Belzer’s last day is also Friday, and she will receive aggregate payments of $871,405, including severance and accelerated vesting of phantom shares.
All information is based on a press release statement included in the company’s SEC filing.
In other recent news, SPAR Group addressed demands made by its founder, Robert G. Brown, who is seeking a $15 million payment from the company. Brown, who established SPAR Group in 1967, has also requested $900,000 in annual consulting fees. Additionally, he seeks a service agreement with his now-defunct business, which could potentially provide him with an estimated $1 million personally. These developments come after Brown made his demands public through a press release and a public filing. SPAR Group issued a statement in response to these claims, which have garnered attention due to the founder’s significant financial requests. The company’s response highlights the ongoing situation involving its founder, who is now 83 years old. These recent developments are part of a broader narrative concerning SPAR Group and its historical ties to its founder.
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