DEF 14A: Middlesex Water Company Announces Details for 2024 Annual Meeting of Shareholders

Middlesex Water Company invites shareholders to its virtual Annual Meeting on May 21, 2024, to vote on director elections, executive compensation, and auditor ratification.

Summary

• Middlesex Water Company will hold its Annual Meeting of Shareholders virtually on May 21, 2024, at 11:00 a.m. EDT.
• Shareholders will vote on the election of four directors, an advisory vote on executive compensation, and the ratification of Baker Tilly US, LLP as the independent auditor for the fiscal year ending December 31, 2024.
• The Board recommends voting for the election of all director nominees, for the approval of executive compensation, and for the ratification of the auditor appointment.
• The record date for determining shareholders eligible to vote is March 26, 2024.
• The company highlights its 51st consecutive year of common dividend increases with a 4.0% increase.
• In 2023, Middlesex navigated a base rate proceeding in New Jersey resulting in a $15.4 million, or 14.06%, increase in annual revenues.

Sentiment

Score: 7

Explanation: The document presents a balanced view of the company's performance and governance, highlighting both achievements and ongoing efforts. The sentiment is moderately positive due to the focus on sustainability, compliance, and shareholder value.

Positives

• The company completed construction of a $50 million upgrade to the Park Avenue Treatment Plant.
• Middlesex achieved a settlement with a third party for recovery of costs associated with the Park Avenue Plant upgrades.
• The company completed construction of a one million gallon elevated storage tank in Sussex County, Delaware.
• Middlesex rehabilitated critical intersecting transmission pipelines, earning recognition in the 2024 Underground Infrastructure Awards.
• The company navigated a base rate proceeding in New Jersey resulting in a $15.4 million, or 14.06%, increase in annual revenues.
• Middlesex marked its 51st consecutive year of common dividend increases with a 4.0% increase.
• The company was awarded Best Compliance and Ethics Program from Governance Intelligence, IR Magazine.
• The company has a 90 percent and above rating on Securityscorecard.io which measures network security, DNS Health, Patching Cadence, Application and Endpoint Security, among other risk factors.

Risks

• The document mentions the importance of managing operational risks including those related to emerging contaminants, cyber threats, climate change and human capital management.
• The document mentions the importance of recruitment and retention of qualified personnel to staff key leadership and technical positions.

Future Outlook

The company's strategy is designed to meet the expectations of customers and shareholders for the long term, including infrastructure investments under the Water for Tomorrow campaign and recruitment of diverse talent.

Management Comments

• As your newly selected President and CEO, I would like to invite you to the Annual Meeting of Shareholders (the Annual Meeting) of Middlesex Water Company (Middlesex or the Company) which will be held virtually on Tuesday, May 21, 2024 at 11:00 a.m. EDT.
• At the meeting, I look forward to sharing with you information about our Company's performance during 2023.
• As your former President, Dennis Doll, has previously shared, 2023 can best be described as a year of transition as the Company continued to strengthen its plants and water distribution system, petitioned for new rates, enhanced cybersecurity efforts and planned for succession of key roles.
• Additional steps were taken to further build a more sustainable and diverse corporate culture.

Industry Context

The company operates in the regulated water and wastewater utility industry, emphasizing the importance of industry-specific experience, balancing shortand long-term needs, and attracting and retaining a skilled workforce.

Comparison to Industry Standards

• The company benchmarks total compensation to the 50th percentile of its comparator group.
• Peer Group companies currently include American States Water Company, Artesian Resources Corp., California Water Service Group, Global Water Resources Inc., SJW Corp., and York Water Company.

Management Changes

Corporate Governance

Stakeholder Impact

• Shareholders: The company aims to deliver long-term shareholder value through infrastructure investments, cost recovery, and strategic acquisitions.
• Customers: The company is committed to providing safe, proper, and reliable utility services and making prudent investments to enhance water quality and system reliability.
• Employees: The company prioritizes employee engagement, safety, training, and diversity, equity, and inclusion to promote an agile and engaged workforce.
• Communities: The company works to serve as a trusted resource to customers and local governments, build stronger communities through active participation, and provide a solid water delivery framework that drives economic stability, prosperity, and quality of life.

Next Steps

• Shareholders are encouraged to vote on the proposals outlined in the Proxy Statement.
• Management will give a brief presentation during the Annual Meeting and shareholders will be invited to submit questions online.
• The company will announce preliminary results at the Annual Meeting and issue final results in a press release and a current report on Form 8-K.

Key Dates

Keywords

Annual Meeting, Shareholders, Proxy Statement, Executive Compensation, Board of Directors, Director Election, Auditor Ratification, Corporate Governance, Sustainability, Middlesex Water Company