Askeladden Capital Management initiates active stake in Computer Task Group

Market Cap: $116 million | Computer Task Group, Incorporated, together with its subsidiaries, operates as an information technology solutions and staffing services company in North America, Western Europe, India, and South America. 

On March 10, 2023, Askeladden Capital Management (5%) expressed its disappointment with the performance of the company and suggested that the company should buy back shares, expand its investor relations effort to better publicize its transformation. Source

Past

On September 9, 2020, Assurance Global Services (AGS) and Wax Asset Management (WAM)(together own 6.4%) sent a letter  to the Board to express their intention to oppose the election of director nominees James R. Helvey, III and Owen J. Sullivan and vote against the proposal regarding the approval and ratification of the company’s proposed 2020 Equity Award Plan at the upcoming 2020 annual meeting of shareholders scheduled to be held on September 17, 2020. They also stated their concerns with respect to the director compensation practices and their recommendations regarding the compensation practices and director composition. 

On September 10, 2020, the company outlined strategic initiatives and commitment to further enhancing shareholder value. Source

On September 14, 2020, Assurance Global Services (AGS) and Wax Asset Management (WAM) sent a letter  to the Board in response to the company’s press release dated September 10, 2020. AGS and WAM believe that all stockholders should make independent decisions regarding the election of directors and the other matters to be voted upon at the company's annual meeting of shareholders. Source

At the AGM held on September 17, 2020, shareholders voted to elect company's nominees and proposal opposed by the investor group.

On October 19, 2020, Assurance Global Services (AGS) and Wax Asset Management (WAM) sent a letter  to the Board discussing their concerns regarding the voting results at the company’s 2020 annual meeting of stockholders and proposed actions for the Board of Directors and company to take in order to improve the company’s governance, compensation and financial transparency practices. They noted that less than 48% of the shares entitled to vote were in favor of the 2020 Equity Award Plan.

On November 3, 2020, Assurance Global Services (AGS) and Wax Asset Management (WAM) sent a letter to the Board due to the company's lack of responsiveness to its October 2020 Letter. In the November 2020 Letter, the concerned investors discussed their views of the company’s opportunity for value creation for its shareholders, including analyses of the company's revenue growth and quarterly adjusted EBITDA margins as compared to certain peer companies, reiterated their previous proposal regarding reconstituting the Board of Directors and suggested the reconstituted Board of Directors direct the creation of a value enhancement plan. 

On November 17, 2020, Assurance Global Services (AGS) and Wax Asset Management (WAM) mutually agreed to dissolve and terminate their informal oral agreement to act as a “group”. Accordingly, AGS and WAM separately, beneficially owns less than 5%. Source