Star Equity Holdings, Inc. 8-K

What Happened
Star Equity Holdings, Inc. (STRR) reported on March 25, 2026 that its Compensation Committee, on March 19, 2026, modified the 2025 executive incentive program and approved a new 2026 Executive Incentive Compensation Plan and a 2026–2028 long‑term incentive plan (LTIP). The Committee approved specific cash and restricted stock unit (RSU) awards for named executives for 2025 performance and set target cash and RSU opportunities for 2026. Awards are tied to performance metrics and RSU grants vest according to their terms.

Key Details

• CEO Jeffrey E. Eberwein: RSU bonus of $268,380 for 2025 (grant previously made; paid after performance conditions were met). 2026 target RSU opportunity set at $650,000.
• COO Richard K. Coleman, Jr.: 2025 cash bonus $90,000 and new RSU grant $45,000. 2026 targets — cash $225,000 and RSU $112,500.
• Chief Accounting Officer Matthew K. Diamond: 2025 cash $45,743 and RSU $53,021 (RSU previously granted; earned on performance). 2026 targets — cash $105,000 and RSU $60,000.
• Jacob Zabkowicz (Global CEO, Hudson Talent Solutions LLC): 2025 cash bonus $150,000 (no RSU). As previously disclosed, 2026 target cash $500,000 and preferred stock opportunity of 30,000 shares; 2026 payouts tied to HTS-specific EBITDA and gross profit metrics.
• Payout criteria: 2026 payouts depend on operating and investment division adjusted EBITDA thresholds, corporate cost targets, and qualitative objectives (expansion, financing, support of operating companies). The 2026–28 LTIP ties payouts to increases in adjusted common shareholders’ equity book value over the three-year period.

Why It Matters
These approvals increase the company’s potential cash and equity compensation tied to 2025 results and 2026–2028 performance. For investors, that means potential future cash outflows and additional share‑based awards (RSUs and preferred stock) if performance targets are met, which can affect reported compensation expense and share dilution. The plans also signal management and the board are linking pay to specific financial and operational targets for 2026 and the LTIP period.