GEORGE TOWN, Cayman Islands - Consolidated Water Co. Ltd. (NASDAQ Global Select Market: CWCO), a prominent water supply and treatment company, has publicly disagreed with Institutional Shareholder Services (ISS) and Glass Lewis recommendations to withhold votes from three board members up for re-election at the May 28, 2024 Annual General Meeting.
The company has countered the advisory firms' stance, advocating for shareholders to vote in favor of re-electing Linda Beidler-D’Aguilar, Brian E. Butler, and Leonard J. Sokolow. ISS and Glass Lewis had raised concerns over Beidler-D’Aguilar's board attendance, Butler's role in board refreshment and gender diversity, and Sokolow's multiple directorships.
Beidler-D’Aguilar, who has served on the board for nearly six years and has been involved with the company's operations in The Bahamas since 1994, attended 69% of the board and committee meetings in 2023. She missed one critical meeting due to a prior commitment but has pledged to meet the 75% attendance threshold in the future. The company emphasizes her legal expertise, experience, and contribution to board diversity as reasons for her re-election.
Butler, criticized for the board's lack of refreshment, has over 50 years of experience as a property developer in the Caribbean. The company values his tenure and expertise, crediting the board's stability for its ability to navigate recent global challenges and deliver positive financial results.
Sokolow, who serves as Co-Chief Executive Officer of SKYX Platforms Corp. and a director of Vivos Therapeutics, Inc., was flagged for holding multiple directorships. However, he has since resigned from Agrify Corporation, aligning with ISS's acceptable parameters for additional board directorship. His expertise in accounting and finance is highlighted as crucial for his role as the company's audit committee financial expert.
Consolidated Water's statement, based on a press release, urges shareholders to support the current board composition, highlighting the directors' diverse backgrounds and experiences as instrumental in guiding the company's long-term success. The company also points to the recent financial performance and growth as evidence of the board's effective leadership.
The company's next annual general meeting is scheduled for May 28, 2024, where shareholders will vote on these matters.
InvestingPro Insights
As Consolidated Water Co. Ltd. (CWCO) prepares for its upcoming Annual General Meeting, the company's financial health and outlook offer context to the discussions surrounding board member elections. According to real-time data from InvestingPro, CWCO's market capitalization stands at a solid $453.18 million, reflecting a degree of investor confidence in the company's value.
With a P/E ratio of 13.95, which adjusts to 13.5 for the last twelve months as of Q1 2024, CWCO appears to be valued reasonably in comparison to earnings. This metric is complemented by a robust revenue growth of 74.12% for the same period, showcasing the company's strong financial performance. Operating income margin at an impressive 21.84% further underscores the company's profitability and efficiency in its operations.
Turning to InvestingPro Tips, it's noteworthy that CWCO holds more cash than debt on its balance sheet, which is a reassuring sign for investors concerned about financial stability. Moreover, the company's ability to maintain dividend payments for 28 consecutive years speaks volumes about its commitment to shareholder returns and financial discipline.
For shareholders contemplating the future of CWCO and the guidance of its board, these financial indicators and InvestingPro Tips provide a snapshot of the company's health. Investors may find additional insights and tips on InvestingPro's platform, which lists 11 more tips for CWCO. To delve deeper into the company's analytics and receive further expert guidance, readers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at https://www.investing.com/pro/CWCO.
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