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CTG to pay board fees only in deferred stock

September 05, 2017

Computer Task Group Inc. (NASD: CTG) will pay director board fees exclusively in deferred stock units, beginning in 2018. Additionally, shares will only vest upon a director’s retirement from the board. 

Under the current director compensation program, each member of the board makes an annual irrevocable election to invest approximately half of their annual board fees in CTG stock units, which vest upon a director’s retirement from the board.

The Buffalo, NY-based IT staffing provider reported it made the change to enhance long-term shareholder value and further enhance alignment between directors and shareholders. Earlier this year, the board adopted a new compensation program for its senior leadership team, which in 2017 received incentive compensation exclusively in the form of restricted stock units tied to significant increases in shareholder value.

“The board is very focused on aligning the interests of the board and senior management with the company’s shareholders,” Chairman Daniel Sullivan said. “With these two actions, I truly believe we have strengthened that relationship, and commend the management team and my fellow board members for their enthusiastic endorsement of these important changes to our compensation programs.” 

Second-quarter revenue fell 9.5% at Computer Task Group on a combination of reduced business and delayed purchase orders at one of its largest staffing clients. CTG also lowered its full-year revenue guidance to a range between $305.0 million and $315.0 million, down from prior guidance of between $312.0 million and $332.0 million.