ISELIN, NJ – Middlesex Water Company (NASDAQ:MSEX) has announced changes to its executive compensation agreements, according to a recent SEC filing. The company, specializing in water supply, disclosed that it will not extend its current Change in Control Agreements past December 31, 2024, for certain executives.
On Monday (NASDAQ:MNDY), the company entered into new Change in Control Agreements with several top executives, set to take effect from January 1, 2025. These agreements include provisions for severance benefits in the event of employment termination following a change in control of the company, such as a significant acquisition of company shares or board changes.
In addition to the new agreements, Middlesex Water Company and its President and Chief Executive Officer, Nadine Leslie, have agreed to an amendment to Leslie's current Change in Control Agreement on Sunday. This amendment aligns Leslie's agreement with the new terms established for other executives.
The agreements specify that the executives will receive compensation, including a lump sum payment and continuation of certain benefits, if they are terminated without cause or resign for good reason within two years after a change in control.
In other recent news, Middlesex Water Company declared a quarterly cash dividend of $0.34 per share, marking a 4.62% increase from the previous dividend. This decision continues the company's 52-year streak of dividend growth. However, Baird downgraded Middlesex Water's stock to Neutral from Outperform, following the company's recent quarterly filing that omitted its anticipated capital expenditure outlook, introducing concerns about future revenue and earnings visibility.
In terms of personnel changes, Middlesex Water announced the appointment of Mohammed G. Zerhouni as Senior Vice President, Chief Financial Officer, and Treasurer. Zerhouni, who brings over two decades of finance leadership experience in the regulated utility sector, succeeds A. Bruce O'Connor following his retirement.
Furthermore, Tidewater (NYSE:TDW) Utilities, a subsidiary of Middlesex Water, is prepared to comply with the forthcoming United States Environmental Protection Agency's drinking water standard for specific PFAS compounds. The company has been proactively testing all its 175 wells and has installed ion exchange resin systems for PFAS treatment at four locations.
InvestingPro Insights
Middlesex Water Company's recent executive compensation changes align with its long-term stability and growth strategy. According to InvestingPro data, the company boasts a market capitalization of $1.19 billion and has demonstrated solid financial performance with a 10.14% revenue growth over the last twelve months as of Q3 2024. This growth is particularly noteworthy in the utilities sector, which often sees slower expansion rates.
InvestingPro Tips highlight MSEX's commitment to shareholder value, having raised its dividend for 21 consecutive years and maintained payments for 54 years. This track record of consistent dividend growth, coupled with a current dividend yield of 2.12%, may appeal to income-focused investors looking for stability in the water utility space.
The company's profitability over the last twelve months, as noted by InvestingPro Tips, supports its ability to offer competitive executive compensation packages and maintain its dividend policy. With a P/E ratio of 28.73, MSEX is trading at a premium compared to some peers, which could reflect investor confidence in the company's management and future prospects.
For investors seeking more comprehensive analysis, InvestingPro offers additional tips and metrics to further evaluate Middlesex Water Company's financial health and market position.
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