{"id":955980,"date":"2026-04-29T08:35:43","date_gmt":"2026-04-29T12:35:43","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/star-equity-fund-calls-on-gee-group-to-change-egregious-executive-employment-agreements\/"},"modified":"2026-04-29T08:35:43","modified_gmt":"2026-04-29T12:35:43","slug":"star-equity-fund-calls-on-gee-group-to-change-egregious-executive-employment-agreements","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/star-equity-fund-calls-on-gee-group-to-change-egregious-executive-employment-agreements\/","title":{"rendered":"Star Equity Fund Calls on GEE Group to Change Egregious Executive Employment Agreements"},"content":{"rendered":"

\nManagement and Board Should Remove All Impediments to Maximizing Sale Proceeds
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OLD GREENWICH, Conn., April 29, 2026 (GLOBE NEWSWIRE) — Star Equity Fund, LP (“Star Equity Fund” or “we”), a 5.4% stockholder of GEE Group, Inc. (NYSE American: JOB) (“GEE Group” or the “Company”), issues the following statement calling on GEE Group’s Management (the \u201cManagement\u201d) and Board of Directors (the “Board”) to negotiate revised employment agreements for CEO Derek Dewan, CFO Kim Thorpe, and COO Alex Stuckey (together, the \u201c2023 Agreements\u201d) removing the value-destroying, excessive severance and the exceptionally anti-shareholder change in control (\u201cCIC\u201d) provisions. In our March 3, 2026 press release, we encouraged the Board to run a sale process to maximize value for all GEE Group stockholders, and we applaud the Company\u2019s subsequent decision to hire Roth Capital partners to assist in evaluating strategic alternatives. We believe that, as part of this process, JOB\u2019s Management and Board should remove all impediments to maximizing the potential sale proceeds.<\/p>\n

\n GEE Group\u2019s Board Agreed to Massive CIC Payments to Management in the 2023 Agreements<\/strong>
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On March 30, 2023, a shareholder activist filed a Schedule 13-D on JOB and within one month\u2019s time, without prior notice or shareholder approval, the Board rewarded a severely underperforming management team with the 2023 Agreements. Notably, prior to our January 21, 2026 press release that effectively \u201cput GEE Group in play\u201d, JOB\u2019s stock price had declined approximately 58%, 82%, and 96% over the previous 3, 5, and 10 years, respectively. Despite this massive decline in stockholder value, we estimate a CIC per the 2023 Agreements would trigger payments of at least $8 million to the three executives \u2013 a staggering 35% of JOB\u2019s unaffected market cap.<\/strong><\/p>\n

\n The 2023 Agreements are Excessive, Anti-Shareholder, and Disruptive to a Value-Maximizing Sale Process<\/strong>
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The 2023 Agreements contain provisions that impose massive, open-ended financial obligations on the JOB shareholders \u2013 obligations that will destroy significant value for JOB\u2019s long-suffering shareholders.<\/p>\n

Specifically, upon a CIC, the 2023 Agreements provide:<\/p>\n