Curated News
By: NewsRamp Editorial Staff
October 20, 2025
Gyrodyne Reaches Governance Deal with Star Equity Fund
TLDR
- Gyrodyne's agreement with Star Equity Fund reduces board size and freezes compensation, creating cost savings and governance improvements that enhance shareholder value.
- Gyrodyne will reduce its board from five to four directors, freeze director compensation, and limit the chairman's fee to $65,000 under the new agreement.
- This governance agreement strengthens shareholder engagement and transparency, building trust while working toward delivering maximum value for all stakeholders.
- Paul Lamb concludes 28 years of service to Gyrodyne, leaving behind a legacy of steady leadership through periods of challenge and transformation.
Impact - Why it Matters
This agreement demonstrates how activist investors can successfully push for corporate governance reforms that benefit all shareholders. The settlement prevents a costly proxy fight while implementing meaningful changes like board size reduction and compensation freezes that align management interests with shareholder value creation. For investors in real estate investment trusts and similar companies, this case shows the growing influence of shareholder activism in driving governance improvements and strategic focus on maximizing property value. The resolution also highlights the importance of constructive dialogue between companies and investors in achieving mutually beneficial outcomes without disruptive public battles.
Summary
Gyrodyne, LLC (Nasdaq: GYRO), a real estate investment company specializing in office, industrial, and service-oriented properties in the New York metropolitan area, has reached a significant governance agreement with activist investor Star Equity Fund, LP. The agreement resolves a potential proxy contest as Star Equity Fund has withdrawn its slate of nominees for the 2025 annual shareholders meeting. In return, Gyrodyne will implement several governance changes including reducing its board size from five to four directors, freezing director compensation, and limiting the chairman's aggregate fee to $65,000. The company's President and CEO Gary Fitlin emphasized that this agreement reflects their commitment to constructive shareholder engagement and aligns with their ongoing efforts to complete property sales and maximize shareholder value.
The settlement includes customary standstill provisions that will be formally documented in a Current Report on Form 8-K filed with the Securities and Exchange Commission. Jeff Eberwein, manager of Star Equity Fund, expressed satisfaction with the collaborative outcome, noting that recent discussions have successfully enhanced governance alignment with shareholder interests. The agreement also marks a leadership transition as Richard Smith becomes the sole nominee for board election, while longtime director Paul Lamb concludes his extraordinary 28-year tenure with the company. Nader Salour, Chairman of Gyrodyne's Nominating Committee, acknowledged Lamb's instrumental role in guiding the company through periods of challenge and transformation, noting that while he won't stand for re-election, he remains a significant shareholder and valued supporter. Additional information about the company can be found at www.gyrodyne.com.
Source Statement
This curated news summary relied on content disributed by citybiz. Read the original source here, Gyrodyne Reaches Governance Deal with Star Equity Fund
