From Earlier: Digirad and Red Oak Partners Agree to Further Strengthen Digirad's Commitment to Governance Best Practices

Digirad Corporation

on Friday announced that, in consultation with Red Oak Partners LLC, the general partner of Red Oak Fund LP, one of its significant stockholders, it will take additional steps to strengthen its commitment to governance best practices. More specifically, Digirad's Board of Directors will continue its existing moratorium on grants of restricted stock units to directors, employees and consultants through at least Digirad's 2013 Annual Meeting of Stockholders. The Board will also enhance its existing non-employee director stock ownership policy to increase the amount of stock that each non-employee director must own in order to continue his or her service on the Board. Digirad will also provide stockholders with an opportunity to express their views on its non-employee director compensation program through an advisory (non-binding) "say-on-pay" vote at the 2013 Annual Meeting. Finally, in an effort to better manage dilution associated with Digirad's equity compensation programs, the Board has agreed to limit, from June 1, 2012 through at least the 2013 Annual Meeting, grants of stock options to an aggregate of no more than 1.5% of Digirad's common stock outstanding as of June 1, 2012 (excluding any inducement or one-time grants to new employees).