Star Equity Holdings announces executive bonuses and targets

Published 11/03/2025, 22:30
Star Equity Holdings announces executive bonuses and targets

OLD GREENWICH, CT – Star Equity Holdings, Inc. (NASDAQ:STRR), a company specializing in electromedical and electrotherapeutic apparatus with a market capitalization of $7.6 million, has announced the approval of annual incentive bonuses for its top executives, as detailed in a recent 8-K filing with the Securities and Exchange Commission. According to InvestingPro data, the company currently faces profitability challenges, with negative EBITDA of $9.67 million in the last twelve months. The bonuses, approved by the company’s Board of Directors on March 7, 2025, are part of the 2024 Executive Incentive Plan and will be distributed partly in cash and partly in restricted stock units (RSUs).

The company’s Chief Executive Officer, Richard K. Coleman, will receive a cash bonus of $114,033 and a stock award amount of $34,210. David J. Noble, the Chief Financial Officer, is set to receive a cash bonus of $90,248 and a stock award amount of $27,075. The exact number of RSUs granted to each executive will be determined based on the closing price of Star Equity Holdings’ common stock two business days after the company releases its financial results for the fiscal quarter and year ended December 31, 2024, with the next earnings announcement scheduled for March 21, 2025. These RSUs will vest over a three-year period.

In addition to the executive bonuses, the Board, following the Compensation Committee’s recommendation, has established performance targets for the fiscal year ending December 31, 2025. These targets include a mix of objective and subjective criteria, which will determine the eligibility of named executive officers to receive annual incentive bonuses for the specified fiscal year.

This move reflects the company’s commitment to incentivizing its leadership team in alignment with its financial performance and strategic objectives. The establishment of performance targets is indicative of the company’s forward-looking approach to executive compensation, tying rewards to both financial results and the achievement of broader company goals. InvestingPro analysis reveals that Star Equity Holdings currently maintains a weak financial health score, with additional insights available in the comprehensive Pro Research Report, which provides detailed analysis of the company’s financial position and future prospects.

The information reported is based on the statements provided in the company’s 8-K filing.

In other recent news, Star Equity Holdings, Inc. announced the acquisition of Alliance Drilling Tools, LLC, enhancing its portfolio with a new Energy Services division. This acquisition, valued at $12.65 million, aims to boost Star’s growth strategy and includes ADT’s facilities in Texas, Wyoming, and Utah, which reported a revenue of approximately $10.5 million for 2024. Star Equity Holdings also implemented new annual bonus plans for senior employees of its subsidiaries, designed to align employee interests with the company’s financial goals. These plans are based on achieving adjusted EBITDA targets, with bonuses distributed in cash and shares of the company’s Series A Preferred Stock. Additionally, Star Equity finalized real estate transactions involving its Prescott, Wisconsin property, resulting in net proceeds of approximately $24,562. The company entered a 20-year leaseback agreement for the property, allowing continued operations while benefiting from the capital generated through the sale. These developments reflect Star’s strategic efforts to expand its business divisions and incentivize key personnel.

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