UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 14A
Proxy Statement Pursuant to Section 14(a) of
theThe Securities Exchange Act of 1934 (Amendment No. )
Filed by the Registrantx ☒
Filed by a Party other than the Registranto ☐
Check the appropriate box:
☐ | Preliminary Proxy Statement |
Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2)) |
☒ | Definitive Proxy Statement |
☐ | Definitive Additional Materials |
☐ | Soliciting Material Pursuant to §240.14a-12 |
Middlesex Water Company
(Name of Registrant as Specified in Its Charter)
(Name of Person(s) Filing Proxy Statement, if other than the Registrant)
Payment of Filing Fee (Check the appropriate box):
☒ | No fee required. |
Fee paid previously with preliminary materials. |
☐ | Fee computed on table | |||
Middlesex Water Company Suite 400 Iselin, New Jersey 08830
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Dear Shareholder:
Thank you for your confidence in Middlesex Water Company. You are cordially invited to attend Middlesex Water Company’sthe Annual Meeting of Shareholders (the “Annual Meeting”) of Middlesex Water Company (the “Company”) which will be held at Delta Hotels by Marriott Woodbridge, 515 US Highway 1 South, Iselin, New Jerseyvirtually on Tuesday,Monday, May 19, 202023, 2022 at 11:00 a.m. EDT. OptionsThis year’s meeting will be held virtually out of continued concerns for attendingthe health and safety of our Annual Meeting are more fully described on page 1 of this document.shareholders.
At the meeting, I look forward to sharing with you information about ouryour Company’s performance during 2019. Highlights2021.
We continued to strengthen our facilities by making investments to enhance service reliability and ensure quality drinking water for present and future generations. We also took important additional steps to further build a more sustainable and diverse corporate culture. Performance highlights include:
We welcome this opportunity to provide an update on company performance and look forward to your comments and questions. We hope you will join us on May 1923thrd as we further discuss our business and vote on issues of importance to your Company.
Details for the meeting are included in this Proxy Statement and are contained on the proxy, or voting instruction card. Also enclosed are details for how and when to vote and other important information. Your vote is very important, so please cast it promptly, even if you plan to attend the virtual Annual Meeting.
On behalf of the Board of Directors, thank you again for your continued strong support and confidence in Middlesex Water Company.
Sincerely,
Dennis W. Doll
Chairman, President and Chief Executive Officer
April 6, 20208, 2022
A Provider of Water, Wastewater and Related Products and Services
Proxy Statement | TABLE OF CONTENTS |
CONSERVING NATURAL RESOURCES THROUGH INTERNET AVAILABILITY OF PROXY MATERIALS This year, we are again using the U.S. Securities and Exchange On or about April
YOUR VOTE IS IMPORTANT We urge you to vote using telephone or internet voting, if available to you, or if you received these proxy materials by U.S. mail, by completing, signing, dating and returning the enclosed proxy card promptly. If voting by phone, please call the toll-free number found on your NOIA of Proxy Materials or on your proxy card. To vote via the Internet, please visit the website shown on your NOIA (www.proxyvote.com) until 11:59 p.m. on May Shareholders of record may deliver their completed proxy card in person at the Annual Meeting of Shareholders or by completing a ballot available upon request at the Annual Meeting. Please note that if you are a beneficial owner whose shares are held in the name of a bank, broker or other nominee, you must obtain a legal proxy, executed in your favor, from the shareholder of record (that is, your bank, broker or nominee) to be able to vote at the Annual Meeting. Beneficial owners of shares of common stock held in street name through a bank or brokerage account should follow the voting instructions enclosed with their proxy materials.
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NOTICE OF 2022 ANNUAL MEETING OF SHAREHOLDERS AND PROXY STATEMENTTO BE HELD ON May 23, 2022
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TUESDAY, MAY 19, 2020Monday, May 23, 2022 — Annual Meeting of Shareholders
Dear Shareholder:
Middlesex Water Company’s
You are cordially invited to attend the Annual Meeting of Shareholders (the “Annual Meeting”"Annual Meeting") of Middlesex Water Company (the "Company") which will be held at Delta Hotels by Marriott Woodbridge, 515 U.S. Highway 1 South, Iselin, New Jersey 08830 on Tuesday, May 19, 2020 beginning23, 2022 at 11:00 a.m. EDT
Eastern Daylight Time for the following purposes:
Item 1: |
James F. Cosgrove Jr.
Steven M. Klein | Amy B. Mansue | Walter G. Reinhard | Vaughn L. McKoy |
Item 2: | To approve, by non-binding advisory vote, named executive officer compensation, as described in the |
Item 3: |
While
In addition, we intendwill transact any other business properly presented at the meeting, including any adjournment or postponement by, or at, the direction of the Board.
This Proxy Statement contains important information for you to hold ourconsider when deciding how to vote on the matters brought before the Annual Meeting in person, we are sensitiveMeeting. Please read it carefully. You do not need to the public health and travel concerns our shareholders may have related to COVID-19, and the protocols that federal, state, and local governments may impose on large group gatherings. For your convenience, you may attend the Annual Meeting in personorder to vote. The Board recommends that you vote in favor of each of the nominees for director (Proposal 1), and in favor of proposals 2 and 3.
To support the health and well-being or throughour shareholders, the Company will have a webcast.virtual only Annual Meeting in 2022, conducted exclusively via audiocast at www.virtualshareholdermeeting.com/MSEX2022. There will not be a physical location for our Annual Meeting and you will not be able to attend the meeting in person.
We strongly encourage shareholders to vote, and to do so as promptly as possible. The deadline for voting by Internet or phone is 11:59 p.m. Eastern Daylight Time on Sunday, May 22, 2022.
Middlesex Water Company • 485C Route 1 South • Suite 400 • Iselin, New Jersey 08830
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NOTICE OF 2022 ANNUAL MEETING OF SHAREHOLDERS Cont'd.
You are invited to attend the Annual Meeting via live audiocast. Whether or not you expect to virtually attend the Annual Meeting, please vote on the matters to be considered as promptly as possible in order to ensure your representation at the meeting. You may attend the webcast of the meeting via the Internetvote at www.virtualshareholdermeeting.com/MSEX2020MSEX2022 when you enter your 16-digit control number included with the Notice of Internet Availability or proxy card. Instructions on how to attend, and participate in, and ask questions at, the Annual Meeting via the webcast are posted at www.virtualshareholdermeeting.com/MSEX2020.MSEX2022. You will be able to vote your shares while attending the Annual Meeting by following the instructions on the website.
The Board of Directors (the “Board”) has fixed the close of business on March 23, 202028, 2022 as the record date for the determination of shareholders entitled to notice of, and to vote at, the Annual Meeting. Only shareholders of record as of the close of business on March 28, 2022, or their proxy holders, may vote at the Annual Meeting. Please note in the absence of specific instructions as to how to vote, brokers may not vote your shares on the election of Directors or the non-binding proposal regarding the compensation of our Named Executive Officers. Please return your proxy card or vote via telephone or internet so your vote can be counted.
By Order of the Board of Directors,
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Iselin, New Jersey April | Jay L. Kooper Vice President, General Counsel and Secretary |
IMPORTANT NOTICE REGARDING OF PROXY MATERIALS TO BE HELD ON MAY 23, 2022 This Proxy Statement and our 2021 Annual Report on |
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This summary highlights information contained in further detail elsewhere in this Proxy Statement. It does not contain all of the information you should consider and you should read the entire proxy statement carefully before voting. For more complete information regarding the Company’s 2019Company's 2021 performance, please also review the Company’sCompany's Annual Report on Form 10-K for the year ended December 31, 2019.2021.
Annual Meeting of Shareholders |
Date and Time: Location:
Record Date: March Mail Date:April Transfer Agent:Broadridge Financial Services, Inc. | Stock Symbol:MSEX Exchange:Nasdaq State of Incorporation:New Jersey Year of Incorporation:1897 Corporate Website: www.middlesexwater.com Shareholder Service Website:www.shareholder.broadridge.com/middlesexwater |
The following table summarizes the proposals to be voted upon at the Annual Meeting and |
PROPOSAL | BOARD VOTE RECOMMENDATION | PAGE REFERENCE | ||
1. Election of Directors | FOR EACH DIRECTOR NOMINEE | 6 | ||
DIRECTOR NOMINEES | ||||
Name | Age | Director Since | Class | Independent |
Steven M. Klein | 56 | 2009 | II | YES |
Amy B. Mansue | 57 | 2010 | II | YES |
Vaughn L. McKoy | 54 | 2021 | III | YES |
Walter G. Reinhard | 76 | 2002 | II | YES |
PROPOSAL | BOARD VOTE RECOMMENDATION | ||
DIRECTOR NOMINEES | ||||
Name | Age | Director Since | Class | Independent |
James F. Cosgrove Jr. | 56 | 2010 | III | YES |
PAGE REFERENCE | ||||
MANAGEMENT PROPOSALS | ||||
2. Advisory Vote to Approve the Company’s Named Executive Officer |
FOR |
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3. Ratification of Baker Tilly |
FOR |
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1. | What is the purpose of the Annual Meeting? |
At the Annual Meeting, shareholders will consider and vote upon three proposals:
Shareholders may also vote upon such other matters as may properly come before the Annual Meeting or any adjournment thereof.
2. | Why am I receiving these proxy materials? |
We are furnishing you these proxy materials in connection with the solicitation of proxies on behalf of our Board for use at the Annual Meeting. This Proxy Statement includes information we are required to provide under U.S. Securities and Exchange Commission (“SEC”("SEC") rules and is designed to assist you in voting your shares.
3. | How can I get electronic access to the proxy materials? |
The Notice of Internet Availability (“NOIA”("NOIA") of Proxy Materials will provide you with instructions how to 1) view on the Internet our proxy materials for the Annual Meeting; and 2) instruct us to send proxy materials to you by U.S. mail. The proxy materials are available at www.proxyvote.com.
4. | What is a proxy? |
A proxy is your legal designation of another person to vote the shares you own. If you designate someone as your proxy or proxy holder in a written document, that document is called a proxy or a proxy card. Directors Kim C. HanemannJames F. Cosgrove, Jr. and Ann L. NobleJoshua Bershad M.D. have been designated as proxies or proxy holders for the Annual Meeting. Proxies properly executed and received by our Corporate Secretary prior to the Annual Meeting,
and not revoked, will be voted in accordance with the terms thereof.
5. | How are other proxy materials being furnished? |
Under rules adopted by the SEC, we have chosen to furnish our proxy materials to our shareholders over the Internet and to provide a NOIA of Proxy Materials by U.S. mail, rather than mailing the printed proxy materials. As a result, the Company is able to reduce printing and postage costs, as well as minimize adverse impact on the environment. If you receive a NOIA, you will not receive a printed copy of the proxy materials in the mail unless you request them by following the instructions provided in the NOIA. Instead, the NOIA instructs you how to access and review all of the information contained in the Proxy Statement and Annual Report to Shareholders.Shareholders online. The NOIA also explains how you may submit your proxy over the Internet. If you would like to receive a printed copy of our proxy materials, you should follow the instructions in the NOIA.
6. | Who is entitled to vote at the Annual Meeting? |
Shareholders of record at the close of business on March 23, 2020,28, 2022, which we refer to as the Record Date, (the “Record Date”"Record Date") are entitled to notice of, and to vote at, the Annual Meeting. On the Record Date, there were 17,439,29917,551,345 shares of Middlesex Water Company (“Common Stock”)common stock issued and outstanding, each entitled to one vote. A complete list of shareholders entitled to vote at the Annual Meeting will be available for examination by any shareholder of record at our offices at 485C Route 1 South, Suite 400, Iselin, NJ 08830 for a period of 10 days prior to the Annual Meeting. The list will also be available for examination by any shareholder of record at the Annual Meeting.
7. | What is the difference between holding shares as a shareholder of record and as a beneficial owner holding shares in |
You are a “Shareholder"Shareholder of Record”Record" if, at the close of business on the Record Date, your shares were registered directly in your name with Broadridge Corporate Issuer Solutions, Inc. (“Broadridge”("Broadridge"), our transfer agent. You are a beneficial owner if, at the close of business on the Record Date, your shares were held by a brokerage firm or other nominee and not directly in your name. Being a beneficial owner means that, like most of our shareholders, your shares are held in “street"street name.”" As the beneficial owner, you have the right to direct your broker or nominee how to vote your shares by following the voting instructions your broker or nominee provides.
8. | How will my shares be voted if I do not vote or if I have not provided instructions to my broker? |
All shares that have been properly voted, whether by Internet, telephone or U.S. mail, and not revoked, will be voted at the Annual Meeting in accordance with your instructions. If you are a shareholder of record and you do not vote by proxy card, by telephone, via the Internet or in person at the Annual Meeting, your shares will not be voted at the Annual Meeting.
If you sign your proxy card but do not give voting instructions, the shares represented by that proxy will be voted as recommended by the Board.
If any other matters are properly presented at the Annual Meeting for consideration and if you have voted your shares by Internet, telephone or U.S. mail, the persons named as proxies in the proxy card will have the discretion to vote on those registered matters for you.
If you are the beneficial owner and you do not direct your broker or nominee how to vote your shares, your broker or nominee may vote your shares on only those proposals for which it has discretion to vote.
Please note that under the rules of the Nasdaq Global Select Stock Market (“Nasdaq”("Nasdaq") your bank, broker or other nominee may not vote your shares with respect to matters considered non-routine (Proposals 1 and 2). Proposal 3, the ratification of our auditor is a routine matter on which brokers and nominees can vote on behalf of their clients if clients do not furnish voting instructions.
9. | How many votes must be present to hold the Meeting? |
In order for the Annual Meeting to be conducted, a majority of the outstanding shares of common stock as of the record date must be present in person or represented by proxy at the Annual Meeting. This is referred to as a quorum.
10. | What is the vote required for each proposal and what are my voting choices? |
Proposal |
Vote Required | Broker Discretionary Vote Allowed |
Proposal 1 - Election of |
Plurality of votes cast |
No |
Proposal 2 - Advisory vote on executive compensation | Majority of the shares entitled to vote and present or represented by proxy |
No |
Proposal 3 - Ratification of auditors for | Majority of the shares entitled to vote and present or represented by proxy |
Yes |
With respect to Proposal 1, the election of one Director,four Directors, you may vote FOR ALL, WITHHOLD ALL or FOR ALL EXCEPT and indicate any nominee for which you withhold authority to vote. Directors are elected by a plurality of votes cast by shareholders present in person or represented by proxy at the Annual Meeting, and entitled to vote on the election of Directors. With respect to Proposals 2 and 3, (or any other matter to be voted at the Annual Meeting), you may vote FOR, AGAINST or ABSTAIN. The approval of the non- bindingnon-binding advisory vote regarding the compensation of our Named Executive Officers (Proposal 2) requires that the votes cast in favor of the proposal exceed the number of votes cast against the proposal. The ratification of the appointment by the Audit Committee of Baker Tilly Virchow Krause,US, LLP (Proposal 3) requires that the votes cast in favor of the ratification exceed the number of votes opposing the ratification.
11. | How does the Board recommend I vote? |
The Board of Directors recommends that you vote:
12. | How are abstentions and broker non-votes counted? |
For purposes of determining the votes cast with respect to any matter presented for consideration at the Annual Meeting, only those votes cast “for”"for" or “against”"against" are included. As described above, where brokers do not have discretion to vote or did not exercise such discretion, the inability or failure to vote is referred to as a “broker"broker non-vote.”" Proxies marked as abstaining, and any proxies returned by brokers as “non-votes”"non-votes" on behalf of shares held in street name because beneficial owners’owners' discretion has been withheld as to one or more matters to be acted upon at the Annual Meeting, will be treated as present for purposes of determining whether a quorum is present at the Annual Meeting. Broker non-votes and withheld votes will not be included in the vote total for the proposal to elect the nominees for Director and will not affect the outcome of the vote for these proposals. In addition, under New Jersey corporation law, abstentions are not counted as votes cast on a proposal. Therefore, abstentions and broker non-votes will not count either in favor of or against the nonbinding advisory proposal regarding the approval of the compensation of our named executiveexecutives or the ratification of the appointment of Baker Tilly Virchow Krause,US, LLP.
Yes. You may revoke a proxy you have given at any time before it is voted at the Annual Meeting by: (1) submitting to our Corporate Secretary a letter revoking the proxy, which the Secretary must receive prior to the Annual Meeting, or (2) attending the Annual Meeting and voting in person. Attendance at the Annual Meeting will not by itself revoke a previously granted proxy, unless you specifically request it. You may change your proxy instructions for shares in “street name” by submitting new voting instructions to your broker or nominee.
Votes will be counted by representatives of Broadridge who will tally the votes and certify the results.
All shareholders of record as of the close of business on March 23, 202028, 2022 can attend the Annual Meeting either in person or via webcast at www.virtualshareholdermeeting.com/MSEX2020. Shareholders are not permitted to bring cameras or recording devices to the Annual Meeting.MSEX2022.
16. | Will there be a management presentation at the Annual Meeting? |
Management will give a brief presentation during the meeting and shareholders will be invited to ask questions.submit questions online.
17. When are shareholder proposals due for the 2023 Annual Meeting?
To be considered for inclusion in our Proxy Statement mailedto be issued in 2021, stockholder2023, shareholder proposals must be received at our executive offices on or before December 9, 2020. Stockholder14, 2022. Shareholder proposals should be directed to the Corporate Secretary at Middlesex Water Company, 485C Route 1 South, Suite 400, Iselin, New Jersey 08830-0452.
18. | Where can I find the voting results of the Annual Meeting? |
We will announce preliminary results at the Annual Meeting. We will issue final results in a press release and in a current report on Form 8-K thatwhich we will file with the SEC on or about May 20, 2020.24, 2022.
19. | How can I participate in Householding of Annual Meeting |
The SEC rules permit us, with your permission, to deliver a single paper Proxy Statement and annual reportAnnual Report to any household at which two or more shareholders of record reside at the same address. Each shareholder will continue to receive a separate proxy card. This procedure, known as “householding”"householding" reduces the volume of duplicate information you received and reduces our expenses.expenses and environmental impact. Once given, a shareholder’sshareholder's consent will remain in effect unless and until he or she revokes it is revoked by notifying our Corporate Secretary as described above. If you revoke your consent, we will begin sending you individual copies of future mailings of these documents within 30 days after we receive your revocation notice. Shareholders of record who elect to participate in householding may also request a separate copy of future Proxy Statements and annual reportsAnnual Reports by contacting our Corporate Secretary in writing at Office of the Corporate Secretary, Middlesex Water Company, 485C Route 1 South, Suite 400, Iselin, New Jersey 08830-0452.
Separate Copies for Beneficial Owners
Institutions that hold shares in street name for two or more beneficial owners with the same address are permitted to deliver a single Proxy Statement and Annual Report to that address. Any such beneficial owner can request a separate paper copy of this Proxy Statement or the Annual Report on Form 10-K by contacting our Corporate Secretary as described above. Beneficial owners with the same address who receive more than one paper Proxy Statement and Annual Report on Form 10-K may request delivery of a single Proxy Statement and Annual Report on Form 10-K by contacting our Corporate Secretary as described above.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (“ESG”) MATTERS
Middlesex Water is pleased to share its progress on environmental, social and governance matters in its recent Corporate Sustainability Report found on its website at www.middlesexwater.com The report provides insight into our culture and further outlines our commitment to operating as a responsible corporate citizen in all aspect of our business. Following are several highlights contained in the report which reflect who we are, how we care for our employees, the environment and the communities in which we operate.
OUR PEOPLE AND CULTURE
CORPORATE GOVERNANCE
SERVING OUR CUSTOMERS
ENVIRONMENTAL STEWARDSHIP
CORPORATE CITIZENSHIP
FISCAL ACCOUNTABILITY
PROPOSAL 1: ELECTION OF DIRECTORS
The Board is elected by shareholders to oversee their interest in the overall success of our business. Board members are divided into three classes with staggered three-year terms of office.terms. The Corporate Governance & Nominating Committee periodically reviews the efficacy of declassifying the Board. This matter was last presentedThe Board continues to the full Board for evaluation in February 2020. Upon thorough discussion, the Board concludedmaintain that maintaining its present classification structure with three classes of Directors with as nearly equal number of members as practicable, provides for the most effective continuance of the knowledge and experience gained by members of the Board, and that maintaining the current Board classification structure serves the best interests of shareholders.
The present terms of Class IIIII Directors expire at the 20202022 Annual Meeting of Shareholders. Mr. Jeffries Shein, our Lead Director and a board member since 1990, is retiring from the Board. Upon the recommendation of the Corporate Governance and Nominating Committee, the Board has nominatednamed a new director, Vaughn L. McKoy to the Board in July 2021 as a Class III Director. Mr. McKoy and the three Class II nominees will stand for election one Director.at the Annual Meeting. The Director nomineenominees for election named below isare willing to be duly elected and to serve. Directors shall be elected by a plurality of the votes cast at the Annual Meeting. If at the time of the election the nominees listed should be unable to serve, it is the intention of the persons designated as proxies to vote, in their discretion, for other nominees, unless the number of Directors is reduced. There were no nominee recommendations from shareholders or from any group of shareholdersshareholder submitted in accordance with regulations of the Securities and Exchange Commission (SEC).SEC.
Election of Directors (Proposal No. 1)
Middlesex Water Company has eightnine Directors on its Board. The following Table provides summary information about each Director nominee standing for initial election or re-election to the Board. Additional information for all of our Directors, including the nominees, may be found beginning on page 7.
Name | Age | Director Since | Principal Occupation | Independent | Committee Memberships | Experience and Skills | Age | Director Since | Principal Occupation | Independent | Committee Memberships | Experience and Skills |
James F. Cosgrove Jr. |
56 |
2010 |
Vice President and Principal of Kleinfelder |
Yes |
Corporate Governance and Nominating Committee, Pension Committee and Ad Hoc Pricing Committee |
Executive Leadership, Environmental Engineering and Construction Management, Water Quality Monitoring | ||||||
Steven M. Klein | 56 | 2009 | President & CEO of Northfield Bancorp, Inc. | Yes | Audit, Pension | Public Company Board Service, Senior Management Leadership, Financial Acumen, Corporate Governance, Human Capital Management/ Compensation, Risk Management, Customer Satisfaction | ||||||
Amy B. Mansue | 57 | 2010 | President & CEO of Inspira Health | Yes | Audit, Compensation | Public Company Board Service, Senior Management Leadership, Financial Acumen, Corporate Governance, Human Capital Management/Compensation, Public Policy/Legal, Operations/Asset Management, Customer Satisfaction | ||||||
Vaughn L. McKoy | 54 | 2021 | Partner with the firm of Inglesino, Webster, Wyciskala & Taylor, LLC | Yes | Audit, Corporate Governance & Nominating | Senior Management Leadership, Financial Acumen, Corporate Governance, Risk Management,Public Policy/Legal, Environmental/Utility Industry Experience, Customer Satisfaction | ||||||
Walter G. Reinhard | 76 | 2002 | Former Partner (retired) of Norris McLaughlin, PA. | Yes | Ad Hoc Pricing, Corporate Governance & Nominating, Pension | Public Company Board Service, Senior Management Leadership, Corporate Governance, Public Policy/Legal, Environmental/Utility Industry Experience |
THE BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS SHAREHOLDERS VOTE FOR THE ELECTION OF THE FOUR DIRECTOR |
NOMINEES FOR THE BOARD OF DIRECTORS
Class III (Term expires in 2020)
James F. Cosgrove Jr., P.E.
Independent Director since 2010
Board Committees:
Corporate Governance & Nominating
Pension, Chair
Ad Hoc Pricing, Chair
Age: 56
Experience and Qualifications:
Mr. Cosgrove is Vice President and Principal of Kleinfelder, a firm offering consulting in architecture, civil and structural engineering, construction management, environmental analysis, remediation, and natural resources management throughout the U.S., Canada and Australia. A Professional Engineer
licensed in the State of New Jersey, Mr. Cosgrove has over 30 years experience in the field of environmental engineering and science with extensive background in water quality monitoring and modeling. Prior to his current position, Mr. Cosgrove was Principal and Founder of Omni Environmental LLC, an environmental consulting firm based in Princeton, New Jersey. Mr. Cosgrove’s professional affiliations include the American Society of Civil Engineers, the American Water Resources Association, the National Society of Professional Engineers, and the Water Environment Federation, among others. He served as a director of the Association of Environmental Authorities from 2005-2011 and currently serves as Chairperson of the New Jersey Clean Water Council.
Education:
Mr. Cosgrove received a B.S. degree in Civil Engineering from Lafayette College and earned his M.E. in Environmental and Water Resource Systems Engineering from Cornell University.
DIRECTORS WITH UNEXPIRED TERMS
We set forth information with respect to the business experience, qualifications and affiliations of our Directors with unexpired termsDirector nominees below:
Class III – (Term expires in 2021)2022)
Dennis W. Doll
Director since 2006
Age: 61
Term: Three (3) years
Experience and Qualifications:Steven M. KleinMr. Doll serves as Chairman of the Board, President and CEO of Middlesex Water Company.
Mr. Doll has more than 35 years of experience in senior level positions in investor- owned water and wastewater utility management. He joined Middlesex Water as Executive Vice President in November 2004 and was named President and Chief Executive Officer, and a Director of Middlesex, effective January 1, 2006. In May 2010, he was elected Chairman of the Board also serving as Chairman of the Boards of Middlesex Water Company’s subsidiary companies. Mr. Doll speaks frequently on water related issues including asset & capital management, infrastructure policy, utility preparedness and resiliency. He has served as Past Chairman of the Board of the National Association of Water Companies and the New Jersey Utilities Association, representing New Jersey’s electric, gas, water and telecommunications industries.
Mr. Doll presently serves as Chairman of the Board of The Water Research Foundation, the independent research arm of the water and wastewater industry with more than 1,200 subscribers and partners across six continents. He also serves as a member of the Board and Executive Committee of the American Water Works Association (AWWA) and Court Appointed Special Advocates (CASA) of Middlesex County, NJ serving the needs of children living in foster care.
Education:
Mr. Doll received a B.A. Degree in Accounting and Economics from Upsala College and is a Certified Public Accountant (inactive).
Class I (Term expires in 2021)
Kim C. Hanemann
Independent Director since 20172009
Board Committees:
Audit, Chair | Audit Committee Financial Expert |
Pension
Age: 56
Term: Three (3) years
Experience and Qualifications:
Ms. Hanemann is Senior Vice President and Chief Operating Officer of Public Service Electric and Gas Company (PSE&G), New Jersey’s oldest and largest public utility company, where she is responsible for execution of the company’s large transmission construction projects. Her responsibilities include oversight of project management, project controls, licensing and permitting, and commissioning. This large portfolio of services under Ms. Hanemann’s management also includes management of key components of PSE&G’s resiliency initiatives and asset hardening projects on company facilities. Although larger in scope and cost, these utility infrastructure challenges are analogous to those managed by Middlesex Water Company. Ms. Hanemann has held numerous leadership positions in both electric and gas field operations and in utility support operations. She was named Vice President in 2010, and Senior Vice President in 2014. Ms. Hanemann serves as a director of the Foundation Board of Children’s Specialized Hospital. She is also the Executive Sponsor for PSEG Women’s Network, an employee resource group aimed at providing women with career development insights.
Education:
Ms. Hanemann earned her Bachelor’s degree in mechanical engineering from Lehigh University and an M.B.A. from Rutgers Graduate School of Management.
DIRECTORS WITH UNEXPIRED TERMS
Class I (Term Expires in 2021)
Ann L. Noble
Age: 58
Term: Two (2) years
Experience and Qualifications:
Ms. NobleSteven M. Klein serves as a Financial Consultant providing advisory services in the areas of strategic planning, financial management and contract negotiation. She previously worked for Qual-Lynx for 14 years holding various positions including President and Chief Executive Officer the last 5 years of her tenure. Prior to that, Ms. Noble served as Vice President, Workers’ Compensation for QualCare, Inc. and Vice President of Finance for Robert Wood Johnson University Hospital. Ms. Noble’s background includes financial and contract management, sales and strategic planning. Ms. Noble serves on the Board of Manasquan Bank and is a Member of the Board of Trustees and Treasurer of the Val Skinner Foundation.
Education:
Ms. Noble earned a B.S. in Accounting from Seton Hall University and is a Certified Public Accountant (inactive).
Class II (Term expires in 2022)
Steven M. Klein
Independent Director since 2009
Board Committees:
Audit, Chair
Audit Committee Financial Expert
Compensation
Pension
Age: 54
Term: Three (3) years
Experience and Qualifications:
Mr. Klein serves as President and and CEO of Northfield Bancorp, Inc. and its subsidiary, Northfield Bank, with overall management responsibility for activities of these entities. Mr. Klein is also designated as a financial expert on the Audit Committee. Mr. Klein was named to the Board of Directors of Northfield Bancorp Inc. and Northfield Bank in August 2013. Mr. Klein’sKlein's background includes serving as an audit partner with the international accounting and auditing firm KPMG LLP. He is a Certified Public Accountant in the State of New Jersey and member of the American Institute of Certified Public Accountants and the New Jersey Society of Certified Public Accountants. He is a board member of the New Jersey Bankers Association and a member of the American Bankers Association. Mr. Klein serves on the Board of Trustees of Richmond University Medical Center.
Education:
Mr. Klein earned a B.A. in Business Administration from Montclair State University.
DIRECTORS WITH UNEXPIRED TERMS
Class II – (Term expires in 2022)
Amy B. Mansue
Independent Director since 2010
Board Committees:
Audit
Compensation, Chair
Corporate Governance & Nominating
Age: 55
Term: Three (3) years
Experience and Qualifications:
Ms. Mansue is Executive Vice President and Chief Experience Officer of RWJBarnabas Health. She formerly served as RWJBarnabas Health President of the Southern Region for 2 and a half years and she served as President and Chief Executive Officer of Children’s Specialized Hospital for 13 years. Ms. Mansue’s background includes serving as a staff member on healthcare policy for former New Jersey Governor Jim Florio; serving as a Deputy Commissioner in the New Jersey Department of Human Services and as Deputy Chief of Staff to former New Jersey Governor James McGreevey. She was President of HIP/NJ and Senior VP of Strategy for HIP/NY. Ms. Mansue serves on the Boards, and is past chair, of the New Jersey Chamber of Commerce and serves on the board of the New Brunswick Development Corporation.
Education:
Ms. Mansue holds a Bachelor’s degree in social welfare and a Master’s degree in social work, planning and management from the University of Alabama.
Class II (Term expires in 2022)
Walter G. Reinhard, Esq.
Independent Director since 2002
Committees:
Lead Director | Ad Hoc Pricing, ex officio |
Corporate Governance & Nominating, Chair |
Pension
Age: 7476
Term: Three (3) years
Experience and Qualifications:
Mr.Walter G. Reinhard was named Lead Director in May 2020. He served as a partner of the law firm of Norris McLaughlin, P.A. prior to his retirement from the active practice of law and partnership in the firm on December 31, 2014. Mr. Reinhard had been with the firm since 1984 and practiced administrative, environmental and regulatory law involving public utilities. He brings over 40 years of legal experience to the Board including expertise in handling regulatory matters before the New Jersey Board of Public Utilities and the New Jersey Department of Environmental Protection. During his tenure at Norris McLaughlin, Mr. Reinhard’sReinhard's professional affiliations included the New Jersey State Bar Association and its Public Utility LawSection (Chair, 1988-89), the Water Utility Council of the American Water Works Association, New Jersey Chapter, and the New Jersey Chapter of the National Association of Water Companies. Mr. Reinhard serves as a Trustee of the Fanwood-Scotch Plains YMCA.
Education:
Mr. Reinhard received his B.A. from the University of Pennsylvania and his J.D. from Pennsylvania State University’s Dickinson School of Law.
Our Directors exhibit an effective mix of skills, expertise and perspectives.Class II – (Term expires in 2022)
Amy B. Mansue
Independent Director since 2010
Board Committees:
Audit | Compensation, Chair
Age: 57
Term: Three (3) years
Experience and Qualifications:
Amy B. Mansue has served as President and Chief Executive Officer of Inspira Health since August of 2020. Previously she worked in the RWJBarnabas Health system for 17 years having served in a variety of roles including: Executive Vice President and Chief Experience Officer of RWJBarnabas Health, RWJBarnabas Health - President of the Southern Region, and President and Chief Executive Officer of Children's Specialized Hospital. Ms. Mansue's background includes serving as a staff member on healthcare policy for former New Jersey Governor Jim Florio, serving as a Deputy Commissioner in the New Jersey Department of Human Services and as Deputy Chief of Staff to former New Jersey Governor James McGreevey. She was President of HIP/ NJ and Senior VP of Strategy for HIP/NY. Ms. Mansue serves on the Boards of the New Jersey Chamber of Commerce, the NJ Hospital Association, Rutgers University Board of Trustees and the New Brunswick Development Corporation.
Education:
Ms. Mansue holds a Bachelor’s degree in social welfare and a Master’s degree in social work, planning and management from the University of Alabama.
Class III – (New Director)
Vaughn L. McKoy
Independent Director since 2021
Board Committees:
Audit | Corporate Governance
& Nominating |
Age: 54
Term: One (1) year
Experience and Qualifications:
Vaughn L. McKoy Esq., is Partner with the firm of Inglesino, Webster, Wyciskala & Taylor, LLC where he specializes in general and commercial litigation, regulatory matters, corporate governance, ethics and compliance and government affairs. His leadership experience includes over 25 years working with federal and state governments, non-profits, law firms and corporations. Mr. McKoy brings to the Middlesex Board over 12 years of experience in various legal and business positions of increasing responsibility at Public Service Enterprise Group (PSEG) New Jersey's largest utility company, where he completed his tenure as Managing Director and Vice-President. Mr. McKoy serves on the Board of Governors of Hackensack Meridian Medical School. He serves as Vice Chair of the Dfree Global Foundation; Board Member of Mentor NY; Leadership Advisory Council of UNCF and on the Corporate Advisory Council of the Boys and Girls Clubs of New Jersey
Education:
Mr. McKoy holds a Bachelor of Science degree in administration of justice from Rutgers University. He earned a juris doctorate from Rutgers University's School of Law and a Master of Business Administration degree from New York University's Stern School of Business.
DIRECTORS WITH UNEXPIRED TERMS
Class III – (Term expires in 2023)
Joshua Bershad, M.D.
Independent Director since 2020
Board Committees:
Audit | Compensation |
Age: 48
Experience and Qualifications:
Dr. Joshua Bershad is Executive Vice President, Physician Services of RWJBarnabas Health and Chief Medical Officer of Rutgers Athletics. In addition to his role with RWJBarnabas Health and Rutgers Athletics, Dr. Bershad teaches in multiple capacities at Rutgers University, including as Clinical Assistant Professor of Medicine at Rutgers-Robert Wood Johnson Medical School, as Adjunct Clinical Professor at Rutgers-Ernest Mario School of Pharmacy, and as Visiting Lecturer at Rutgers Business School EMBA Program. Previously, he served in multiple senior executive roles within Robert Wood Johnson University Hospital & Health System, including Senior Vice President/Chief Medical Officer and Chair of the Medical Executive Committee for approximately 10 years. He was the organizer and initial President of RWJ Physician Enterprise, a multispecialty physician group. Dr. Bershad serves as a member of the Board of Directors of the Middlesex County Medical Society and is Chairman of the Board of Directors of Robert Wood Johnson Visiting Nurses. He also is a member of the Board of Trustees of the VNA Health Group.
Education:
Dr. Bershad attended both Rutgers Medical School and Rutgers Business School where he received his MD and MBA, respectively. He also holds a Bachelor's degree in Biology/Geology from the State University of New York (SUNY) Binghamton.
Class III – (Term expires in 2023)
James F. Cosgrove Jr., P.E.
Independent Director since 2010
Board Committees:
Ad Hoc Pricing, Chair | Compensation |
Pension, Chair
Age: 58
Experience and Qualifications:
James F. Cosgrove is Vice President and Principal of Kleinfelder, a firm offering consulting in architecture, civil and structural engineering, construction management, environmental analysis, remediation, and natural resources management throughout the U.S., Canada and Australia. A Professional Engineer licensed in the State of New Jersey, Mr. Cosgrove has over 30 years experience in the field of environmental engineering and science with extensive background in water quality monitoring and modeling. Prior to his current position, Mr. Cosgrove was Principal and Founder of Omni Environmental LLC, an environmental consulting firm based in Princeton, New Jersey. Mr. Cosgrove's professional affiliations include the American Society of Civil Engineers, the American Water Resources Association, the National Society of Professional Engineers, and the Water Environment Federation, among others. He served as a director of the Association of Environmental Authorities from 2005-2011 and currently serves as an executive committee member of the New Jersey Clean Water Council.
Education:
Mr. Cosgrove received a B.S. degree in Civil Engineering from Lafayette College and earned his M.E. in Environmental and Water Resource Systems Engineering from Cornell University.
Middlesex Water Company 8 2022 Proxy Statement
DIRECTORS WITH UNEXPIRED TERMS
We set forth information with respect to the business experience, qualifications and affiliations of our Directors with unexpired terms below:
Class I – (Term expires in 2024)
Dennis W. Doll
Director since 2006
Age: 63
Experience and Qualifications:
Mr. Doll serves as Chairman of the Board, President and CEO of Middlesex Water Company.
Mr. Doll has more than 35 years of experience in senior level positions in investor-owned water and wastewater utility management. He joined Middlesex Water as Executive Vice President in November 2004 and was named President and Chief Executive Officer, and a Director of Middlesex, effective January 1, 2006. In May 2010, he was elected Chairman of the Board also serving as Chairman of the Boards of Middlesex Water Company’s subsidiary companies. Mr. Doll speaks frequently on water related issues including asset & capital management, infrastructure policy, utility preparedness and resiliency. He has served as Past President of the National Association of Water Companies and past Chairman of the New Jersey Utilities Association, representing New Jersey’s electric, gas, water and telecommunications industries.
Mr. Doll recently completed services as Chairman of the Board of The Water Research Foundation and as a Director and member of the Executive Committee of the Board of the American Water Works Association. He presently serves as Treasurer and member of the Board of Court Appointed Special Advocates (CASA) of Middlesex County, NJ.
Education:
Mr. Doll received a B.A. Degree in Accounting and Economics from Upsala College.
Class I – (Term expires in 2024)
Kim C. Hanemann
Independent Director since 2016
Board Committees:
Audit | Compensation |
Corporate Governance & Nominating
Age: 59
Experience and Qualifications:
Kim C. Hanemann was named President and Chief Operating Officer of Public Service Electric & Gas Company (PSE&G) effective June 30, 2021. PSE&G is one of the largest combined electric and gas companies in the United States and is New Jersey's oldest and largest publicly owned utility. Previously she had been Senior Vice President and Chief Operating Officer, responsible for PSE&G's electric, gas and customer operations, as well as the Company's asset management and centralized services. She also oversaw the on-time, on-scope and on-budget execution of the company's large construction projects. Prior to being named Chief Operating Officer, Ms. Hanemann held numerous leadership positions in both electric and gas field operations and in utility support operations. Ms. Hanemann serves on the Board of Trustees of Children Specialized Hospital. She is also the Executive Sponsor for PSEG Women's Network, an employee resource group aimed at providing women with career development insights.
Education:
Ms. Hanemann earned her Bachelor’s degree in mechanical engineering from Lehigh University and an M.B.A. from Rutgers Graduate School of Management.
Class I (Term Expires in 2024)
Ann L. Noble
Independent Director since 2019
Board Committees:
Ad Hoc Pricing | Corporate Governance
Pension & Nominating
Age: 60
Experience and Qualifications:
Ann L. Noble serves as a Financial Consultant providing advisory services in the areas of strategic planning, financial management and contract negotiation. She previously worked for Qual-Lynx for 14 years holding various positions including President and Chief Executive Officer the last 5 years of her tenure. Prior to that, Ms. Noble served as Vice President, Workers' Compensation for QualCare, Inc. and Vice President of Finance for Robert Wood Johnson University Hospital. Ms. Noble's background includes financial and contract management, sales and strategic planning. Ms. Noble serves on the Board of Manasquan Bank and is a Member of the Board of Trustees and Treasurer of the Val Skinner Foundation.
Education:
Ms. Noble earned a B.S. in Accounting from Seton Hall University and is a Certified Public Accountant (inactive).
Middlesex Water Company 9 2022 Proxy Statement
DIRECTOR COMPENSATION AND EQUITY OWNERSHIP GUIDELINES
For 2021, Middlesex Water Company compensated each of the Board members who are not employed by the Company (“Outside Directors”) with Common Stock valued at $35,000. Mr. Doll, Chairman of the Board and an Executive Officer of the Company, receives no fee or common stock award for his services as a member of the Board or the Boards of the Company’s subsidiaries. The table below sets forth the annual retainers for 2021.
Position | Annual Retainer |
Outside Director | $50,000 (1) |
Lead Director | $ 5,000 |
Chair of Audit Committee | $ 7,500 |
Chair of Compensation Committee | $ 5,000 |
All other Chairpersons | $ 2,500 |
(1) | The annual retainer of $50,000 consists of a cash compensation component of $15,000 and a common stock compensation component of $35,000. |
The Board committee meeting fees for outside Directors is $750 per Director for each Board committee meeting attended.
The following table details Director compensation for 2021.
Fees earned or paid in cash | Common Stock | Total Compensation | ||||||||||
Name | ($) | ($) | ($) | |||||||||
Joshua Bershad, M.D. | 18,400 | 43,750 | (2) | 62,150 | ||||||||
James F. Cosgrove Jr. | 25,400 | 35,000 | 60,400 | |||||||||
Kim C. Hanemann | 20,650 | 38,500 | (2) | 59,150 | ||||||||
Steven M. Klein | 28,900 | 35,000 | 63,900 | |||||||||
Amy B. Mansue | 24,150 | 35,000 | 59,150 | |||||||||
Vaughn L. McKoy | 8,650 | 23,333 | (3) | 31,983 | ||||||||
Ann L. Noble | 21,400 | 35,000 | 56,400 | |||||||||
Walter G. Reinhard | 28,900 | 35,000 | 63,900 |
(2) Amount in excess of $35,000 includes prorated stock award from year director was appointed.
(3) Reflects prorated compensation for joining the Board in July 2021.
As part of their annual compensation, each Director receives Company common stock valued at $35,000. The Board believes that all Directors should maintain a meaningful ownership stake in the Company to underscore the importance of aligning their long-term interests with those of our shareholders. Directors are required to hold common stock valued at least three times the amount of the annual retainer by the fifth anniversary of Board membership. All Board members met this requirement for 2021.
Middlesex Water Company 10 2022 Proxy Statement
» | All directors are independent, other than the CEO. |
» | Independent Lead Director |
» | Board committees are comprised entirely of independent directors |
» | Commitment to corporate social responsibility and sustainability |
» | Advisory vote on named executive officer compensation is held on an annual basis |
» | Prohibitions against hedging and borrowing against Company stock |
» | Stock ownership requirements for Directors and Executive Officers |
» | Compensation Committee oversees alignment of pay to performance |
» | Transparent process for shareholder communications with the Board |
» | Annual Board and Committee evaluations |
Code of Ethics and
Corporate Governance Guidelines
Management of the Company is under the general direction of the Board of Directors (the “Board”) who are elected by the shareholders. The Company’sCompany's business is managed under the direction of the Board in accordance with the New Jersey Business Corporation Act and our Certificate of Incorporation and By-laws. Members of the Board are kept apprised of our business through discussions with the Chairman and Chief Executive Officer and other Company Officers, by reviewing briefing materials and other relevant information provided to them, and by participating in meetings of the Board and its Committees.
The Board has adopted
On August 20, 2021, a significantly expanded Code of Conduct that applies to all Directors, Officers and employees. This Code encompasses all areas(the "Code") was approved by the Board which includes new guidelines of professional conduct,behavior for board members as well as strict adherencevendors and suppliers. All employees were required to all lawsreview the Code and regulations applicableaffirm, with their signature, that they read and understand the provisions of the Code. Employees receive ongoing education about the Code and are advised they have an ongoing obligation to consult with the conductGeneral Counsel over any question or potential conflict of our business.interest. In addition, the Company has established an internal hotlineEthics Hotline where Code of Conduct violations may be reported by any employee or member of the general public.
The Company’sCompany's Code, of Conduct, as well as the charters for the Audit, Compensation, Corporate Governance & Nominating, and Pension Committees, are available on our website www.MiddlesexWater.com under the heading Investors - (Governance). We also make this information available in print to any shareholder upon request. Requests should be addressed to Corporate Secretary, Middlesex Water Company, 485C Route 1 South, Suite 400, Iselin, New Jersey 08830-0452.
Compliance with environmental regulations, strong corporate citizenship and sound governance are essential to the Company’s success. Middlesex Water’s work impacts our environment and our communities. The Company works to deliver water and wastewater solutions that are environmentally responsible, sustainable and represent prudent management of assets and thoughtful stewardship of natural resources. Middlesex Water also acts in a socially responsible manner. This means building and maintaining strong community relationships, promoting diversity and inclusion, providing professional development and safe working conditions for our employees, safeguarding customer data, engaging with our stakeholders and supporting causes in our communities. We believe an integrated approach to corporate governance, environmental compliance, operational leadership and corporate citizenship should be a high level initiative which helps create long term value for our shareholders. Middlesex Water has produced a Corporate Sustainability Report which addresses Environmental, Social and Governance (ESG) highlights. This 2018-2019 Corporate Responsibility Report can be found on our website at www.middlesexwater.com. Formal oversight of ESG matters are part of the charter of the Corporate Governance and Nominating Committee.
The Company’s Common Stock is listed on the Nasdaq Global Select Market. Nasdaq listing rules require that a majority of the Company’s directors be “Independent Directors” as defined by Nasdaq corporate governance standards. “Independent Director” means a person other than an Executive Officer or employee of the Company or any other individual having a relationship which, in the opinion of the Company’s Board of Directors, could interfere with the exercise of independent judgment in carrying out the responsibilities of a Director. For purposes of this rule, “Family Member” means a person’s spouse, parents, children and siblings, whether by blood, marriage or adoption, or anyone residing in such person’s home.
As defined by Nasdaq corporate governance requirements, a member of the Board is not independent if:
✔ The Director is, or at any time during the past three years, has been employed by the Company.
✔ The Director has accepted, or has a family member that has accepted any compensation from the Company in excess of $120,000 during any period of twelve consecutive months within the three years preceding the determination of independence.
✔ The Director is a family member of an individual who is, or at any time during the past three years was, employed by the Company as an Executive Officer.
✔ The Director is, or has a family member who is, a partner in, or a controlling Shareholder or an Executive Officer of, any organization to which the Company made, or from which the Company received, payments for property or services in the current or any of the past three fiscal years that exceed 5% of the recipient’s consolidated gross revenues for that year, or $200,000, whichever is more.
✔ The Director is, or has a family member who is, employed as an Executive Officer of any other entity where at any time during the past three years any of the officers of the Company serve on the compensation committee of such other entity.
✔ The Director is, or has a family member who is, a current partner of the Company’s independent auditor, or was a partner or employee of the Company’s independent auditor who worked on the Company’s audit at any time during any of the past three years.
With the exception of Mr. Doll, who is an Executive Officer of the Company, the Board has determined that each member of the Board is independent under the Nasdaq listing standards.
The Board based this determination primarily on a review of the responses of the Directors to a comprehensive annual questionnaire regarding employment and compensation history, affiliations, family and other relationships, together with an examination of those companies with whom the Company transacts business. The Directors certify individually as to their representations.
The Board shall consist of not less than five nor more than twelve members in accordance with the By-laws.
Board Meetings and Annual Meeting Attendance by Board Members
The frequency and length of Board meetings, as well as agenda items, are determined by the Chairman and Committee Chairs with input from all other Directors. Meeting schedules are approved by the full Board.
The Board holds regularly scheduled meetings and meets on other occasions when required. We expect our Directors to attend each meeting of the Board and of the committees on which he or she serves. We expect our Directors to attend our Annual Meeting of shareholders. During 2019, the Board held nine meetings and the Board Committees held thirteen meetings. In 2019, no member of the Board attended fewer than 80% of the total number of meetings of the Board and Committees on which each served. All of the Directors serving at the time of the Annual Meeting held in May 2019 attended that meeting.
The Board does not have a formal policy on whether or not the role of the Chief Executive Officer and Chairman of the Board should be separate or, if it is to be separate, whether the Chairman should be selected from the independent Directors or be an employee. Currently, the Company operates with one individual, Mr. Doll, serving as Chairman of the Board as well as President and Chief Executive Officer, coupled with a strong independent Lead Director and independent standing Board committees. The Board believes that combining the Chairman of the Board and President and Chief Executive Officer roles is the appropriate corporate governance structure at this time because: a) it most effectively utilizes Mr. Doll’sDoll's extensive utility and management experience and knowledge regarding the Company, and b) it leverages his capabilities in effectively identifying strategic priorities and leading discussions on, and execution of, the Company’sCompany's strategy.
The Board has embedded in its culture, a philosophy of “constructive tension”"constructive tension" whereby, the Board fulfills its mission to support the strategic direction of the Company while simultaneously fully representing the interests of our shareholders. The Board accomplishes this by challenging the President and Chief Executive Officer and the Company’sCompany's management on an ongoing basis.
In order to ensure that the independent Directors play a leading role in our current leadership structure, the Board established the position ofmaintains a Lead Director in 2010 and named Jeffries Shein to the position. Mr. Shein, Director since 1990, serves on the Compensation, Corporate Governance & Nominating and Ad Hoc Pricing Committees. Mr. Shein has announced his retirement from the Board and will not be standing for re-election. The Board intends to name a newWalter Reinhard was named Lead Director at itsthe May 2020 Board Meeting.meeting.
Summary of Lead Director Responsibilities:
As part of our Board’sBoard's annual assessment process, the Board evaluates our Board leadership structure to ensure it remains appropriate. The Board recognizes there may be circumstances that would lead it to conclude that separate roles of Chief Executive Officer and Chairman of the Board may not be appropriate, but believes that the absence of a formal policy requiring either the separation or combination of the roles of Chairman and Chief Executive Officer provides the flexibility to determine the most appropriate governance structure, as conditions potentially change in the future.
Middlesex Water Company 11 2022 Proxy Statement
Board Diversity Matrix (As of April 8, 2022) | ||
| Female | Male |
Total Number of Directors | 9 | |
Part l: Gender ldentity | ||
Directors | 3 | 6 |
Part ll: Demographic Background | ||
African American or Black | 0 | 1 |
White | 3 | 5 |
The Board as a whole plays an integral role in shaping the Company's strategy, governance and culture. Another critical responsibility is responsible for overseeing our risk exposure as part of determining business strategy that generates long-term shareholder value. Risk Management Oversight was formally added to the Corporate Governance Committee’s responsibilities in 2012 and remains under the supervisionoversight is a core responsibility of the Corporate Governance and Nominating Committee.
Specifically, the Corporate Governance and Nominating Committee is responsible for overseeing the process by which significant business and operational risks (including information security risks and risks related to climate change) are identified throughout the enterprise and the strategies developed to mitigate any identified risks. This added oversight is reflected in the Corporate Governance and Nominating Committee’sCommittee's Charter which was recently revised and approved by the Board, and is available in the Investors section of our website www.middlesexwater.com under Governance. The primary purpose of the Corporate Governance and Nominating Committee in fulfilling its risk management oversight responsibilities is accomplished by (i) assessing and reporting to the Board on the Company’sCompany's risk environment, including its material, strategic, and operational risks (including but not limited to the brand and reputation of the Company; the health and safety of the Company’sCompany's employees and the business operations of the enterprise); (ii) ensuring that management understands and accepts its responsibility for identifying, assessing, and managing risk; (iii) facilitating management’smanagement's strategic focus on the Company’sCompany's risk management vision and its evolution; (iv) verifying that the guidelines and policies governing the process by which risk assessment and management is undertaken are comprehensive and evolve commensurate with the risk profile of the Company; and (v) reviewing those risks that the Corporate Governance and Nominating Committee deems material to the Company’sCompany's shareholders. Management retains responsibility for all day-to-day activities of the Company, including administration of the Company’sCompany's formal Enterprise Risk Management program. The Corporate Governance and Nominating Committee updates the Board on risk management activities routinely throughout the year.
Specifically as it relates to cybersecurity, our Board receives regular updates from the Vice President of Information Technology on cyber risks and ongoing policies and plans to assess the effectiveness of our information technology and data security processes.
Committee | Primary Areas of Risk Oversight |
Audit | Risks Related to Financial Reporting and Controls Reviews work performed by the independent registered public accounting firm Supervises our independent and confidential Ethics hotline reporting system which encourages and allows employees to raise concerns Oversees matters related to internal audit functions Reviews and approves related party transactions, if any |
Compensation | Oversees human capital risks Risks related to compensation and benefits program for executive management Risks related to organizational development including recruitment, retention and engagement |
Corporate Governance and Nominating | Risks related to overall corporate governance, including our governance policies and practices Risks related to Board composition, Board structure and Board and executive officer succession planning Enterprise Risk management including operational, financial and brand risk Risks related to information technology and data security Risks related to corporate social responsibility and environmental, social and governance matters including climate related risks |
Middlesex Water Company 12 2022 Proxy Statement
The Company's Common Stock is listed on the Nasdaq Global Select Market. Nasdaq listing rules require that a majority of the Company's directors be "Independent Directors" as defined by Nasdaq corporate governance standards. "Independent Director" means a person other than an Executive Officer or employee of the Company or any other individual having a relationship which, in the opinion of the Company's Board of Directors, could interfere with the exercise of independent judgment in carrying out the responsibilities of a Director. For purposes of this rule, "Family Member" means a person's spouse, parents, children and siblings, whether by blood, marriage or adoption, or anyone residing in such person's home.
As defined by Nasdaq corporate governance requirements, a member of the Board is not independent if the Director:
✔ | Is, or at any time during the past three years, has been employed by the Company. |
✔ | Has accepted, or has a family member that has accepted any compensation from the Company in excess of $120,000 during any period of twelve consecutive months within the three years preceding the determination of independence. |
✔ | Is a family member of an individual who is, or at any time during the past three years was, employed by the Company as an Executive Officer. |
✔ | Is, or has a family member who is, a partner in, or a controlling Shareholder or an Executive Officer of, any organization to which the Company made, or from which the Company received, payments for property or services in the current or any of the past three fiscal years that exceed 5% of the recipient's consolidated gross revenues for that year, or $200,000, whichever is more. |
✔ | Is, or has a family member who is, employed as an Executive Officer of any other entity where at any time during the past three years any of the officers of the Company serve on the compensation committee of such other entity. |
✔ | Is, or has a family member who is, a current partner of the Company's independent auditor, or was a partner or employee of the Company's independent auditor who worked on the Company's audit at any time during any of the past three years. |
With the exception of Mr. Doll, who is an Executive Officer of the Company, the Board has determined that each member of the Board is independent under the Nasdaq listing standards.
The Board based this determination primarily on a review of the responses of the Directors to a comprehensive annual questionnaire regarding employment and compensation history, affiliations, family and other relationships, together with an examination of those companies with whom the Company transacts business. The Directors certify individually as to their representations.
The Board shall consist of not less than five nor more than twelve members in accordance with the Company By-laws.
Board Meetings and Annual Meeting
Attendance by Board Members
The frequency and length of Board meetings, as well as agenda items, are determined by the Chairman and Committee Chairs with input from all other Directors. Meeting schedules are approved by the full Board.
The Board holds regularly scheduled meetings and meets on other occasions when required. We expect our Directors to attend each meeting of the Board and of the committees on which they serve. We expect our Directors to attend our Annual Meeting. During 2021, the Board held nine meetings and the Board Committees held fourteen meetings. All Board and Committee meetings had 100% Director attendance. All of the Directors serving at the time of the May 2021
Annual Meeting attended that meeting.
The Independent Directors periodically meet without management in executive session. The Lead Director is designated to preside at these executive sessions.
Any shareholder wishing to communicate with a Director may do so by contacting the Company’sCompany's Corporate Secretary at:
Middlesex Water Company
485C Route 1 South, Suite 400,
Iselin, New Jersey 08830
The Corporate Secretary will forward to the Director a written, email or phone communication. The Corporate Secretary has been authorized by the Board to screen frivolous or unlawful communications or commercial advertisements.
In order to be eligible for inclusion in our proxy materials for our 20202022 Annual Meeting, any shareholder proposal must have been received by the Corporate Secretary of the Company, 485C Route 1 South, Suite 400, Iselin, New Jersey 08830 no later than December 10, 2019.14, 2021. No shareholder proposals were received by the Company for the 20202022 Annual Meeting.
Advanced Notice of Business to be Conducted at the Annual Meeting
Shareholders are entitled to submit proposals on matters appropriate for shareholder action consistent with regulations of the SEC. For business to be properly brought before an Annual Meeting by a shareholder, the business must be an appropriate matter to be voted by the shareholders at an Annual Meeting and the shareholder must have given proper and timely notice in writing to the Corporate Secretary of the Company at 485C Route 1 South, Suite 400, Iselin, New Jersey 08830-0452.
A shareholder’sshareholder's notice to the Corporate Secretary must set forth as to each matter the shareholder proposes to bring before the Annual Meeting:
a) a brief description of the matter desired to be brought before the Annual Meeting and reasons for conducting such business at the Annual Meeting,
b) the name and address, as they appear in the Company’sCompany's records, of the shareholder proposing such business,
c) the class and number of shares of the Company which are beneficially owned by the shareholder and
d) any material interest of the shareholder in such business.
Middlesex Water Company 13 2022 Proxy Statement
We welcome the opportunity to engage with our shareholders to share our perspectives on and obtain their feedback on matters of mutual interest. We engage with the shareholders throughout the year to:
How We Engage
We approach shareholder engagement as an integrated, year-round process involving the Chief Executive Officer, the Chief Financial Officer and our Investor Relations team. Throughout the year, we had dialogue with analysts, institutional investors, Proxy advisory firms, ESG Ratings Firms and others to inform and share our perspective and to solicit their feedback on our performance. This includes participation in virtual investor conferences, group and one-on-one meetings as well as our virtual annual shareholder meeting. We also share information in our Annual Report and Proxy Statement, press releases, SEC filings, quarterly shareholder letters, on our corporate and transfer agent website as well as in our Corporate Sustainability Report.
Key Themes Discussed in 2021
Succession Planning: Recruitment and retention of qualified personnel to staff key leadership and technical positions remains a top priority.
Risk Management: Managing operational risks including those related to emerging contaminants, cyber threats, climate change and human capital management is critical to business success.
Employee Health & Safety: The ongoing health and safety of our employees, particularly in navigating the effects of the ongoing pandemic, is critical in ensuring business continuity and service reliability.
The Board maintains a number of standing committees to assist with the performance of its responsibilities. The number, structure and function of Board Committees are reviewed periodically by the Corporate Governance and Nominating Committee. The Committees regularly report to the Board on their deliberations. The Committees also bring to the Board for consideration those matters and decisions which the Committees judge to be of special significance and which require full Board approval. The table shown below provides information on currentboard committee membership.membership for the year 2022.
Board and Committee Self-Evaluation
The Board periodically evaluates its performance through a self-assessment questionnaire which is reviewed by the Corporate Governance & Nominating Committee. The Board conducts such evaluations as determined by the Corporate Governance & Nominating Committee.Committee
Steven M. Klein, Audit Committee Chair |
Audit Committee Members:
Kim C. Hanemann
Steven M. Klein
Amy B. Mansue
Ann L. Noble
Independent Members:3
Meetings Held in 2019:3
Audit Committee Responsibilities
The Audit Committee is responsible for oversight of the audit of the Company’s financial statements and internal controls over financial reporting. It is also assigned the responsibilities of (i) oversight of the Company’s internal audit functions; (ii) review of related party transactions with the Company; (iii) determining whether to grant waivers with respect to the Company’s Code of Conduct; and (iv) investigation of “whistleblower” complaints. In all its actions, the Committee shall comply with the requirements, rules and regulations of the Sarbanes-Oxley Act of 2002, Nasdaq Global Select Marketplace listing standards and all other applicable federal and state laws, rules and regulations.
In the course of performing its functions, the Audit Committee, as provided by the Audit Committee Charter:
Independence
The Board has determined that under current Nasdaq listing standards, all members of the Audit Committee are independent directors. The Audit Committee reports to the Board on its activities.
Committee Charter
In February 2020, the Board of Directors re-approved the written Charter for the Audit Committee which is available in the Investors section of our website www.MiddlesexWater.com under Governance. Please refer to this Charter for a full listing of Audit Committee responsibilities.
Compensation Committee Members:
Steven M. Klein
Amy B. Mansue
Jeffries Shein
Independent Members:3
Meetings Held in 2019:1*
Compensation Committee Responsibilities
The Compensation Committee administers the compensation and benefits program for executive officers of theMiddlesex Water Company including the incentive compensation program for all participating employees. In addition, the Committee administers the Compensation program relative to the Board in consultation with the Corporate Governance and Nominating Committee. In all its actions, the Committee shall comply with the requirements, rules and regulations of Nasdaq Marketplace listing standards and all other applicable federal and state laws, rules and regulations.
*Although one meeting was held in 2019, an additional executive session was held with the full Board, absent Mr. Doll, regarding compensation matters.
The Compensation Committee:
Independence
The Board has determined that under current Nasdaq listing standards, all members of the Compensation Committee are independent Directors. The Compensation Committee reports to the Board on its activities.
Committee Charter
In March 2020, the Board of Directors re-approved a written Charter for the Compensation Committee which is available in the Investors section of our website www.MiddlesexWater.com under Governance. Please refer to this Charter for a full listing of Compensation Committee responsibilities.
Compensation Committee Interlocks and Insider Participation
The members of the 2019 Compensation Committee were Steven M. Klein, Amy B. Mansue and Jeffries Shein. During 2019, no member of the Compensation Committee was at any time an officer or employee of the Company or its subsidiaries. No current member is related to any other member of the Compensation Committee, any other member of the Board or any executive officer of the Company.
Corporate Governance andNominating CommitteeMembers:
James F. Cosgrove Jr.Amy B. MansueWalter G. ReinhardJeffries Shein
Independent Members:4
Meetings Held in 2019:4
Corporate Governance and Nominating Committee Responsibilities
The Corporate Governance and Nominating Committee shall provide assistance to the Board in fulfilling the responsibility for matters relating to the organization of the Board; shall identify, evaluate and propose new nominees to the Board; and make recommendation to the Board on all such matters and for other issues, including risk management oversight, relating to the Company’s corporate governance. In so doing, the Corporate Governance and Nominating Committee shall maintain free and open means of communication between the Directors and executive officers of the Company. In carrying out its responsibilities, the Corporate Governance and Nominating Committee strives to ensure to the Directors and shareholders that the corporate governance practices of theMiddlesex Water Company are in accordance with applicable regulations and reflect the highest ethical standards.
Among its various responsibilities, the Corporate Governance and Nominating Committee:
Independence
The Board has determined that under current Nasdaq listing standards, all members of the Corporate Governance and Nominating Committee are independent Directors.
Committee Charter
A revised charter for the Corporate Governance and Nominating Committee was approved by the Board of Directors in February 2020, and is available in the Investors section of our website www.MiddlesexWater.com under Governance. Please refer to this Charter for a full listing of Corporate Governance and Nominating Committee responsibilities.
Process for Identifying and Evaluating Director Candidates
The Corporate Governance and Nominating Committee identifies Director nominees from a variety of sources which may include recommendations from management, Board members, shareholders and other sources.
The Committee recommends to the Board nominees that:
The Committee also considers age and diversity. Diversity is broadly construed to mean a variety of opinions, perspectives, personal and professional experiences and backgrounds, such as gender, race and ethnicity differences, as well as other differentiating characteristics. The Committee has the authority to retain assistance from independent third parties in identifying and evaluating prospective candidates for nomination and election to the Board.
Director Candidate Recommendations and Nominations by Shareholders
The Corporate Governance and Nominating Committee considers shareholders’ recommendations for nominees for election to the Board. Shareholder nominees are evaluated under the same standards as nominees ultimately recommended by the non-management members of the Board. Nominations must be accompanied by the written consent of any such person to serve if nominated and elected, and by biographical material, to permit evaluation of the individual recommended, including appropriate references.
Recommendations may be mailed to:Middlesex Water Company
Office of the Corporate Secretary485C Route 1 South
Suite 400
Iselin, New Jersey 08830-0452
In order to be considered for inclusion in the Company’s Proxy Statement and form of proxy relating to the 2021 Annual Meeting, nominations for Director must be received by the Company by the close of business on December 16, 2020.
Pension Committee Members:
James F. Cosgrove Jr.Kim C. HanemannSteven M. KleinWalter G. Reinhard
Independent Members:4
Meetings Held in 2019:4
Pension Committee Responsibilities
The Pension Committee is responsible for matters relating to the investment and governance objectives of the Company’s retirement plans.
The Pension Committee:
Independence
The Board has determined that under current Nasdaq listing standards, all members of the Pension Committee are independent Directors. The Pension Committee reports to the Board on its activities.
Committee Charter
In February 2020, the Board of Directors re-approved a written Charter for the Pension Committee which is available in the Investors section of our website www.MiddlesexWater.com under Governance. Please refer to this Charter for a full listing of Pension Committee responsibilities.
Ad Hoc Pricing Committee Members:
James F. CosgroveJr. Jeffries Shein
Independent Members:2
Meetings Held in 2019:1
Ad Hoc Pricing Committee Responsibilities
The Ad Hoc Pricing Committee meets, as needed, to review financial matters including, but not limited to, the pricing and issuance of equity and long-term debt securities.
DIRECTOR COMPENSATION AND EQUITY OWNERSHIP GUIDELINESONGOING COMPANY RESPONSE TO COVID-19
Supporting Our People, Our Customers and Our Communities
In 2021, the Company faced many challenges similar to the previous year brought upon by the COVID-19 pandemic. Due to the nature of the service we provide, it is imperative that we have the people and plans in place to ensure uninterrupted service delivery during one of the most serious public health crises of our time. Equally important is that while doing so we continue to prioritize the health and safety of our employee and customer populations.
In order to accomplish this, below are some of the actions we continued to take throughout 2021:
Director CompensationCORPORATE SUSTAINABILITY
For 2019, Middlesex Water
The Company compensated eachcontinues to make meaningful progress in matters of ESG as part of our current and long term plans for sustainability. We're committed to the highest standards of ethical behavior, further growing diversity, equity and inclusiveness in our workforce and our Board, making prudent investments in aging infrastructure, maintaining public health, safety and economic stability in the communities we serve and serving as a trusted and reliable resource to our customers and communities.
Our Board maintains overall oversight of the Board members who are not employed byCompany's business strategy while our Corporate Governance and Nominating Committee oversees matters related to ESG and overall sustainability as well as Enterprise Risk Management. Our mature Enterprise Risk Management program, in place since 2006, includes assessing and mitigating risks related to the Company (“Outside Directors”)safety of our workforce, environmental compliance, the security of our information technology systems, climate, financial, brand and reputation and a host of other potential threats to our business and facilities. The executive team holds routine discussions with Common Stock valued at $28,000. Mr. Doll, Chairmanthe Corporate Governance and Nominating Committee on all matters of the Boardrisk, including ESG risks and an Executive Officer of the Company, receives no fee or common stock award for his services as a member of the Board or the Boards of the Company’s subsidiaries. The table below sets forth the annual retainers for 2019.related initiatives and progress toward sustainability goals.
Our approach to corporate social responsibility includes capturing ESG metrics that connect to our business strategies, foster accountability and enhance operational performance. These generally relate to the following areas:
Our approach to sustainability involves:
The Board committee meeting fees for outside Directors is $750 per Director for each Board committee meeting attended. In the event that a Special Board or a Special Committee meeting via teleconference were to be held, the meeting fees for outside Directors are $400 and $200 per meeting, respectively.
✔ | Increasing our internal focus and strengthening our organizational frameworks to enhance year over year disclosure |
✔ | Engaging external stakeholders to better understand ESG expectations |
✔ | Improving transparency and disclosure on material topics |
✔ | Integrating ESG aspects into our decision making and planning |
✔ | Analyzing data collected to effect continual improvement |
The following table details Director compensation for 2019.
Name | Fees earned or paid in cash ($) | Common Stock ($) | Total Compensation ($) |
James F. Cosgrove Jr. | 23,900 | 28,000 | 51,900 |
Kim C. Hanemann | 19,350 | 28,000 | 47,350 |
Steven M. Klein | 28,900 | 28,000 | 56,900 |
Amy B. Mansue | 23,450 | 28,000 | 51,450 |
Ann L. Noble | 13,150 | 28,000 | 41,150 |
Walter G. Reinhard | 23,900 | 28,000 | 51,900 |
Jeffries Shein | 23,050 | 28,000 | 51,050 |
As partCompany's 2021 Corporate Sustainability Report demonstrates an ongoing commitment to ESG and continual improvement and offers an overview of their annual compensation, each Director receives Company common stock valued at $28,000. The Board believes that all Directors should maintain a meaningful ownership stakesteps we are taking in the Companyareas of governance and compliance, cybersecurity, social impact, diversity and inclusion, environmental stewardship and network resiliency, to underscorebetter support our people, our environment and the importance of aligning their long-term interests with those ofcommunities we serve. Our latest Corporate Sustainability Report can be found on our shareholders. Directors are required to hold common stock valuedwebsite at least three times the amount of the annual retainer by the fifth anniversary of Board membership. All Board members met this requirement for 2019.
www.middlesexwater.com/About Us/Sustainability.
Sustainability Highlights of 2021
The Company made numerous investments in infrastructure to enhance drinking water quality, protect public health and support system reliability. These include completion of a $72 million treatment plant conversion to ozone at its largest treatment plant in New Jersey to address disinfection byproducts and constituents of emerging concern and improvements to back up power generation systems. To improve fireflows and overall service quality, Middlesex invested $10 million under its 2021 RENEW Program to further modernize drinking water infrastructure in the Borough of Metuchen, NJ, where it replaced 24,800 linear feet of water main, as well as service lines, valves and fire hydrants.
Along with a number of other New Jersey water utilities, one of Middlesex's wellfields tested above state limits for the newly established standard for Perfluorooctanoic acid (PFOA), in 2021. The Company anticipates having new treatment in place to ensure compliance by mid-2023. Until then, the Company has developed an interim plan and, working with engineering and water quality experts, was able to turn off the wells and replace that water with alternate sources. This ensures customers are receiving water that meets all federal and state drinking water standards.
The Company continued to leverage technology to ensure sustainable drinking water infrastructure. This includes utilizing electromagnetic inspection equipment to robotically inspect critical underground pipelines, using hydrant based acoustic leak detection to help crews remotely listen detect and respond to leaks throughout its water distribution system and collecting data through soundwaves that provides transparency into the condition and integrity of a pipeline.
In 2021, our management team and our Board continued to place increased emphasis on succession planning, leadership development and policies and strategies regarding recruitment, retention, career development, diversity, equity and inclusion. In addition to reaffirming its commitment to human rights and diversity, equity and inclusion through public statements published on its website in 2021, the Company offered employee training throughout the year to raise awareness of the dangers of bias and the importance of inclusion and belonging in the workplace. We are intentional in our efforts to attract candidates from historically marginalized groups and seek a diverse pool of candidates for roles within the company as well as apprenticeships and internship opportunities.
To support a positive, productive and engaged workforce we offer the flexibility of a remote work model to those employees whose responsibilities afford them to do so. We offer employees a robust compensation and benefits package as well as numerous training and professional development opportunities. Surveys are conducted annually to identify strengths and opportunities to build an even more positive and rewarding workplace culture.
To ensure transparency at the highest levels, and comply with new Nasdaq Listing Rule 5605, we have disclosed board level diversity statistics in this Proxy. All operating companies listed on Nasdaq's U.S. exchange will be required to publicly disclose each director's self-identified diversity characteristics.
Given the increased importance of cybersecurity with the water utility space, we conducted ongoing cyber security training, phishing exercises and other education to help employees better understand their role in protecting their company's cyber health as well as sensitive company and customer data. Middlesex continually reviews its policies and procedures governing cybersecurity, use of technology and data privacy.
The Company continues to address affordability by working with customers who may experience difficulties paying their water bills by offering payment plan arrangements. In 2021, no New Jersey customer was or will be disconnected for non-payment of their water bill through March 15, 2022.
Guidelines, polices and procedures guide our business processes. Our Board regularly reviews our governance policies and Board composition to assure we are aligned with the interests of our shareholders.
In 2021, the Company's Code of Conduct was significantly expanded to include more disclosures as well as additional guidelines of behavior for directors. In addition, to help guide our contractors, vendors and suppliers, Middlesex created a Supplier Code of Conduct, which took effect August 20, 2021 and outlines expectations for our business partners.
We continued to educate all employees including Company Directors and Officers about our expanded Insider Trading Policy. This Policy helps to further support the high standards of ethical conduct surrounding the trading of company stock, comply with insider trading laws and regulation and to prevent the appearance of insider trading.
All employees, including Executive Officers and the Board of Directors, are required to annually review, attest to and comply with the Company's Code of Conduct. All employees are required to acknowledge in writing their responsibilities under the expanded Insider Trading Policy.
Both the expanded Code of Conduct and Insider Trading Policy are available on our website Middlesexwater.com under Governance.
Middlesex Water Company 19 2022 Proxy Statement
Our Approach to Executive Compensation
What We Do
|
We balance our need to appropriately serve our customers against our need to deliver long-term shareholder value.
We benchmark total compensation to the 50th percentile of our comparator group. Budgeted Income Before Income Taxes is the financial metric on which incentive compensation is based for Named Executive Officers (NEOs). Such annual target amount is approved by the Board. Incentive compensation awards to NEOs, other than the CEO, are based 60% on achieving the financial metric and 40% on achievement of operational, service, growth and other non-financial metrics. The CEO's incentive awards are based 80% on achieving the financial metric and 20% on operational, service, growth and other non-financial We believe our incentive compensation program should be simple, transparent and easily understood by shareholders, analysts, regulators and other interested parties. Our incentive compensation program is administered in the form of a long-term benefit through restricted shares of Common Stock with a five-year cliff vesting schedule. A modest short-term benefit is provided through the dividends on the awarded restricted Common Stock for the five-year period during which the shares are unvested. The Chief Executive Officer is required to beneficially hold shares of Common Stock equal in value to at least 3.0 times base salary. The Chief Financial Officer is required to beneficially hold 1.5 times base salary. All other NEOs are required to beneficially hold 1.0 times base salary and all NEOs are to hold the required shares by their fifth anniversary of their designation as NEOs. Directors are required to hold 3.0 times their annual retainer by the fifth anniversary of their Board membership. We regularly review our designated comparator group to ensure our compensation program is properly aligned with the peers whose relative size, operations, regulatory requirements and other relevant characteristics are reasonably comparable to ours. What We Do Not Do We do not engage in compensation programs that create undue risk or are difficult to assess how effectively incentive targets were achieved. We prohibit the pledging of, or hypothecating, or otherwise placing a lien on, any Common Stock or other equity interest of the Company. All employees of the Company, including NEOs, are "at will employees." All NEOs of the Company do however, have Change of Control Agreements deemed to incent management to actively represent the interest of shareholders in contemplation of a change in control. Under our "clawback" policy, we do not allow any recipient of previously-awarded restricted Common Stock to retain the amount of such awards, which were based on achievement of financial metrics, that would have been invalidated by a restatement of financial statements. We do not reprice or buy out unvested restricted Common Stock awards. Middlesex Water Company 20 2022 Proxy Statement The Compensation Committee has reviewed and approved the Compensation Discussion and Analysis and has recommended to the Board that it be included in this Proxy Statement. COMPENSATION DISCUSSION AND ANALYSIS Note: The Compensation Committee and the Board continually evaluate our executive compensation program to ensure it fulfills the key objectives of our executive compensation philosophy, aligns with key operational and sustainability objectives and serves the overall best interests of our customers and our shareholders. The following Compensation Discussion and Analysis Middlesex Water Company owns and operates regulated water and wastewater utility systems in New Jersey Our The Company remains committed to a disciplined and balanced approach to meeting the short- and long-term needs of shareholders, customers and employees. This compensation philosophy is consistent with the and Nominating Committee has formal responsibility for oversight of the Enterprise Risk Management Compensation Program Oversight The Compensation Committee is responsible for making recommendations to the full Board with respect to the compensation of the NEOs. As part of these duties, the Committee: The Compensation Committee is governed by a formal charter that describes the Role of Executives in Compensation The executive officers who serve as a resource to the Compensation Committee are the Chief Executive Officer and the Vice President, Human Resources. These executives provide the Compensation Committee with data regarding market-based compensation philosophy, processes and practices related to human capital management including developing, attracting and retaining personnel, succession planning, company culture and employment practices. This communication assists the Committee in the design and implementation of the The Chief Executive Officer also provides individual performance assessments for the other NEOs, and expresses to the Compensation Committee recommendations for changes in compensation for all Officers of the Company, other than himself, based on individual performance. The Compensation Committee periodically communicates directly with independent third-party consultants, providing such consultants with Company-specific and Middlesex Water Company 21 2022 Proxy Statement by the Vice President - Human Resources or the Chief Executive Officer, in assisting in the evaluation of the estimated effect on the An executive compensation study was last completed by Steven Hall & Partners, an independent firm specializing in executive compensation, in The Compensation Committee periodically engages qualified independent compensation consultants to assist in the compensation process for NEOs. The consultants are retained by, and report directly to, the Compensation Committee. The Chair of the Compensation Committee serves as the designated primary contact with outside compensation consultants. The Compensation Program Objectives and Philosophy • Attract, retain and appropriately motivate employees • Compensate executives for long-term improvement in overall shareholder value • Provide differentiated executive pay based on experience, assigned responsibilities and performance • Support the attainment of short and long-term financial and strategic objectives The methods used to achieve the compensation program objectives for NEOs are influenced by the compensation and employment practices of a comparator group, as adopted in consultation with the Our program is designed to compensate the NEOs based on their level of assigned responsibilities, individual experience and performance levels and their knowledge and management of the Factors that influence the design of our executive compensation program include, among other things, various items listed as follows: Our compensation program for NEOs includes three components: (1) base salary, (2) an equity-based long-term incentive plan in the form of restricted common stock and (3) perquisites at levels that are competitive in the marketplace and appropriate for the roles of the NEOs. The incentive-based component of our compensation program is designed to be clear, transparent and understandable to investors and recipients. This is intended to simplify analysis by our shareholders of the relationship of pay to performance as well as to emphasize the critical importance of a long-term focus in the water and wastewater utility industry on financial and operational performance. Components of Our Compensation Program The Compensation Committee analyzes the level and relative mix of the elements of executive compensation by component When evaluating the components comprising total compensation, the Compensation Committee considers general market practices and the alignment of incentive awards with strategic objectives and Company operational and financial performance. The Compensation Committee seeks to create appropriate incentives to promote service quality and shareholder value without encouraging behaviors Middlesex Water Company 22 2022 Proxy Statement Base Salary: Base salary is designed to provide a reasonable level of predictable compensation commensurate with market standards of the position held. NEOs are eligible for periodic adjustments to their base salary based on these factors. The Compensation Committee reviews and recommends to the Board any base salary changes for NEOs, including the Chief Executive Officer. Adjustments are made for each Incentives:The Company does not have a formal plan or program that provides for cash or other form of short-term incentive compensation for NEOs other than dividends on restricted stock awards There is no minimum holding/retention period for restricted shares that become fully vested. The Company does however have minimum stock ownership and holding requirements. See Stock Ownership and Holding Requirements on page The Restricted Stock Plan is designed to compensate the NEOs for executing specific financial and non-financial elements of the The corporate financial goal comprised 60% of the target award for NEOs other than the President and Chief Executive Officer, whose corporate financial goal comprised 80% of his target award. The remaining portion of the target award for all NEOs is based upon the level of achievement of The Compensation Committee evaluates the reasonableness of attaining designated incentive goals relative to the importance of such goals to the overall mission and strategies of the Company and the required effort to achieve such goals. The Committee recognizes that some level of calculated risk is required to achieve business objectives that ultimately benefit shareholders and customers however; the Committee discourages taking risk that, in the judgment of the Board, is inappropriate relative to the expectations of our shareholders and regulators. Delivered performance during the applicable measurement period may exceed, or fall short, of the targets, resulting in the NEO potentially receiving an incentive award that is above or below the initial targeted level. Annual incentive awards granted in prior years are not taken into account by the Compensation Committee in the process of setting performance targets or in evaluating achievements for the current year. Incentive-based awards are subject to the precipitated such prior award. Awards made to any and all NEOs are subject to the provisions of the clawback policy. Our policy prohibits any Director, NEO or In evaluating actual performance relative to the established corporate financial goal, the Compensation Committee may, at its discretion, exclude individual items that are either additive or deductive which are considered non-recurring in nature. Such items are generally presumed to be infrequent. In addition, the Compensation Committee may increase or decrease a Restricted Stock award based upon additional consideration of a Diverse talent we are recruiting today and nurturing through training and professional development become the leaders of tomorrow. We drive accountability across our enterprise through a set of core values that drive daily decision-making. These core values of Respect, Integrity, Growth, Honesty and Teamwork serve as the standards by which our people The basic tenets of our strategy for profitability and growth include: Our In connection with the market-based analysis of compensation conducted by our independent consultant in the Name Base Salary Name Base Salary The values of the respective financial and non-financial long-term award targets for each NEO for Name Target ($) Financial Target ($) Non-Financial Target ($) Target ($) Financial Target ($) Non-Financial Target ($) In order for any NEO to be eligible for any amount of long-term incentive award, the Committee, and ultimately the full Board, considers a variety of qualitative factors in their overall assessment of the individual and collective performance of the NEOs. Such factors align with the In its further assessment of the extent to which long-term incentive awards would be made relative to performance, the Committee evaluated the performance of each respective NEO, based upon the financial and operational metrics below. The financial target award metric of The non-financial target award metrics established for each NEO were as follows: Dennis W. Doll • • A. Bruce O’Connor • • Bernadette M. Sohler • • Jay L. Kooper • • Lorrie B. Ginegaw • • The Company does not have established threshold and maximum award percentages defined relative to each financial and non-financial performance goal. There is no implicit expectation that partial awards would be made relative to the Company financial target, or the non-financial targets, if the target is not fully achieved. The non-financial award targets are partially qualitative in nature. An element of judgment is applied by the Compensation Committee in assessing the extent to which any individual non-financial target was, or was not achieved. Awards are therefore recommended in the sole judgment and discretion of the Compensation Committee, with the ultimate approval of the full Board. In the Compensation Middlesex Water Company 25 2022 Proxy Statement Name Company Non-Financial #1 Award ($) Non-Financial #2 Award ($) Total Long- ($) Company Non-Financial #1 Award Non-Financial #2 Award Total Long- ($) Broad-based Benefits. NEOs are provided with certain health and welfare benefits available to all qualifying employees of the Company, as well as selected fringe benefits and perquisites, not generally available to all The following summarizes the broad-based benefits, available to all qualifying employees, in which the NEOs participate: Executive Benefits and Perquisites.The NEOs received the following fringe benefits and perquisites: The Compensation Committee formally reviews all components of executive compensation on an annual basis, as well as on an interim basis, as deemed necessary. Supplemental Executive Retirement Plan. Certain of the Offsetting amounts related to Social Security and other benefit plans are calculated similarly for all NEOs. Generally, a participant is vested in the SERP at ten (10) years of service in the case of retirement, and in the event of a Change in Control, as described further herein. A participant’s right to receive benefits under the SERP generally commences: 1) upon retirement, 2) to their beneficiary at death or, 3) in connection with a Change in Control upon termination under the circumstances described in the SERP. Benefits are generally payable upon achieving Normal Retirement, as defined in the SERP, to the participant or the The Company is not obligated to set aside or earmark any monies or other assets specifically for the purpose of funding the SERP except that upon a Change in Control, the Company would be obligated to make contributions to a trust anticipated to be sufficient to meet the obligations under the SERP. Absent a Change in Control, benefit payments are in the form of an unfunded general obligation of the Company. Exceptions to Usual Procedures.The Compensation Committee may recommend to the full Board that they approve the payment of special cash compensation to one or more NEOs, in addition to payments approved during the annual compensation-setting cycle. The Committee may make such a recommendation if it believes it is appropriate to reward one or more NEOs in recognition of contributions to a particular project or initiative, or in response to customer, competitive or other factors that were not addressed during the recurring annual compensation-setting cycle or, that may have changed since the annual compensation-setting cycle. Stock Ownership and Holding Requirements The Company has formal stock ownership and holding requirements for NEOs, to be achieved within five years of being designated a NEO. A formal beneficial Common Stock ownership and holding requirement of 3.0 times base salary Employment Agreements. The Company does not have employment agreements with any of the NEOs other than in conjunction with a Change in Control, as detailed elsewhere in this Proxy Statement. All NEOs are Compensation Committee Amy B. Mansue, Chair The following table details compensation earned or accrued by our NEOs for the three years ended December 31, 2021, 2020 and 2019, respectively. Name and Principal Position Year Salary (1) Stock Awards (2) Change in Pension ($) (3) All other ($) Total ($) A. Bruce O’Connor Sr. Vice President-Treasurer and Jay L. Kooper Vice President, General Counsel & Secretary SCHEDULE A - SUMMARY - ALL OTHER COMPENSATION The following table details all other compensation earned or accrued for the three years ended December 31, 2021, 2020 and 2019, respectively. Middlesex Water Company 27 2022 Proxy Statement The following table details information relative to grants of plan-based awards to the NEOs under our Restricted Stock Plan during the year ended December 31, 2021. *The Company does not employ the use of stock options. The following table details information regarding the vesting of stock awards as of December 31, 2021. Name Shares Acquired (#) Value Realized ($) *The Company does not employ the use of stock options. The following table represents outstanding unvested restricted stock awards as of December 31, 2021. Shares of stock that Market value of shares have not vested The following table details the present value of accumulated benefits that have accrued under the Qualified Defined Benefit Pension Plan (Qualified Plan) and the SERP as of December 31, All employees hired before April 1, 2007, including all the NEOs except for Mr. Kooper, who was hired after March 31, 2007, and who receive pay for a minimum of 1,000 hours during the calendar year, are participants in the Messrs. Doll, Employees hired after March 31, 2007 are not eligible to participate in the Qualified Plan, but do participate in a qualified defined contribution plan, in lieu of the Qualified Plan, that provides an annual contribution at the discretion of the Company, based upon a percentage of the POTENTIAL PAYMENTS UPON CHANGE IN CONTROL The Company has Change in Control Agreements with the NEOs. These agreements generally provide that if the executive is terminated by the Company other than for death, disability, retirement, Cause (as defined in the agreement), or if the executive resigns for Good Reason (as defined in the agreement) within three (3) years after a Change In Control of the Company, also as defined in the agreement, the executive is entitled to receive, (a) a lump sum severance payment equal to three (3) times the In addition to the benefits to be paid to the executive as noted above, if there is a separation from service under the terms of the Change in Control agreement on or before the third anniversary of the Change in Control, the Company shall pay the executive any deferred compensation, including, but not limited to, deferred bonuses allocated or credited to the executive as of the date of termination. Also, any outstanding restricted stock grants awarded to the executive under the A Change in Control may also lead to the payment of benefits to the NEOs and other Executive Officers, who participate in the SERP. Under the SERP, if an executive leaves the Notwithstanding the foregoing, if an executive leaves the Name Compensation Paid (using definition of “Compensa- ($) Termination Compensation Paid (using definition of “Compensa- ($) Termination NON-BINDING PROPOSAL TO APPROVE THE COMPENSATION OF OUR NAMED EXECUTIVE OFFICERS Section 14A of the Exchange Act, as amended by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, or the The Compensation Committee of the Board of Directors is responsible for making recommendations to the full Board of Directors with respect to the compensation of the NEOs, including the Chief Executive Officer. As part of these duties, the Committee administers the The overall objectives of the Based on its review of the total compensation of our NEOs for fiscal year The Compensation Discussion and Analysis section of this Proxy Statement and the accompanying tables and narrative provide a comprehensive review of NEO compensation objectives, program and rationale. We urge you to read this disclosure before voting on this proposal, the approval of which is included as Proposal 2 in this Proxy Statement. This advisory vote is typically referred to as a For the reasons stated above, the Board is requesting your non-binding approval of the compensation of NEOs, as disclosed in the Compensation Discussion and Analysis, the compensation tables and the accompanying narrative on pages Your vote on this proposal will be non-binding and will not be construed as overruling a decision by the Board. Your vote will not create or imply any change to fiduciary duties or create or imply any additional fiduciary duties for the Board. However, the Board values the opinions that our shareholders express in their votes and will consider the outcome of the vote when making future executive compensation decisions as it deems appropriate. THE BOARD RECOMMENDS SHAREHOLDERS VOTE FOR PROPOSAL 2, THE NON-BINDING ADVISORY PROPOSAL APPROVING THE COMPENSATION OF OUR NAMED EXECUTIVE OFFICERS. The Audit Committee of the Board of Directors is comprised solely of independent directors. The Committee Committee members for the year Management is responsible for the Each year, the Audit Committee evaluates and considers the qualifications, audit quality, tenure and independence of Baker Tilly. In doing so, the Audit Committee considers the qualifications of Baker Management represented to the Audit Committee that the the consolidated audited financial statements with management and Baker Tilly. The Audit Committee discussed with Baker Tilly the matters required to be discussed under the rules adopted by the PCAOB which included: Baker Tilly also discussed with the Audit Committee their evaluation of critical audit matters under the PCAOB auditor reporting model, and the related effect on their auditor report. Baker Tilly also provided to the Audit Committee the written disclosures required by the applicable rules of the PCAOB, and the Audit Committee discussed with Baker Tilly the Based on the Audit The Audit Committee also discussed with management the process used for the establishment and maintenance of disclosure controls and procedures in quarterly and annual reports which is required by the SEC and the Sarbanes-Oxley Act of 2002, for certain of the Audit Committee Steven M. Klein, Chairman RATIFICATION OF APPOINTMENT BY THE AUDIT COMMITTEE OF THE INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM The shares represented by the proxies will be voted for ratification of the appointment by the Audit Committee of Baker Tilly Although submission of the appointment of an independent registered public accounting firm to shareholders for ratification is not required by law or regulation, the Board is submitting the selection of an independent registered public accounting firm for shareholder ratification. The affirmative vote of a majority of the votes cast by shareholders in person or represented by proxy, at the Annual Meeting is required for the approval of this Proposal. The Board has not determined what action it would take if the shareholders do not approve the selection of Baker Tilly, but may reconsider the selection if the shareholders’ action so warrants. Even if the selection is ratified, the Audit Committee, exercising its own discretion, may select different auditors at any time during the year if it determines that such a change would be in the Company’s best interests and in the best interests of shareholders. INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM FEES Baker Tilly was previously approved and appointed by the Audit Committee as the 2019 ($) 2018 ($) {a} Audit fees were incurred for audits of the financial statements and internal control over financial reporting of the Company, an audit of the financial statements of a subsidiary of the Company, reviews of the financial statements included in the Company’s quarterly reports on Form 10-Q, and services provided in 2019 in connection with equity and debt financings. {b} Tax fees were incurred for the preparation of the Company’s tax returns. 2021 ($) 2020 ($) {a} Audit fees were incurred for an audit of the financial statements and internal control over financial reporting of the Company, audits of the financial statements of a subsidiary of the Company, and reviews of the financial statements included in the Company's quarterly reports on Form 10-Q. {b} Tax fees were incurred for the preparation of the Company’s tax returns. The Audit Committee has established an approval policy for all recurring audit services and all other permitted services to be performed by Baker Tilly. Recurring audit services include annual audits of the Middlesex Water Company 32 2022 Proxy Statement SECURITY OWNERSHIP AND OTHER MATTERS SECURITY OWNERSHIP OF DIRECTORS, MANAGEMENT AND CERTAIN BENEFICIAL OWNERS The following table sets forth as of March (1) Beneficial owner has the sole power to vote such shares. * Represents Section 16(A) Beneficial Ownership Under Section 16 of the Securities Exchange Act of 1934, Officers and Directors, and certain beneficial owners of the The following table sets forth as of March BlackRock Inc. 55 East 52nd Street New York, NY 10055 (1) This information is based on a Schedule 13G Combined filed with the SEC on January 26, 2022. The Board does not intend to bring any other matters before the Annual Meeting and has no reason to believe any will be presented for consideration at the Annual Meeting. If, however, other matters properly do come before the Annual Meeting, it is the intention of the persons named in the accompanying proxy to vote in their discretion on such matters. Electronic Access to Proxy Materials and Annual Reports Our Proxy Statement and Annual Report are available at www.proxyvote.com. Paper copies of these documents may be requested by contacting our Corporate Secretary in writing at the Office of the Corporate Secretary, Middlesex Water Company, 485C Route 1 South, Suite 400, Iselin, New Jersey 08830. The Company is subject to the informational requirements of the Securities Exchange Act of 1934 and files an Annual Report on Form 10-K with the Securities and Exchange Commission. Additional copies of the Minutes of The minutes of the THIS PAGE IS INTENTIONALLY LEFT BLANK. Middlesex Water Company 34 2022 Proxy Statement THIS PAGE IS INTENTIONALLY LEFT BLANK. Middlesex Water Company 35 2022 Proxy Statement THIS PAGE IS INTENTIONALLY LEFT BLANK. MATERIALS & VOTE VOTE BY INTERNET Important Notice Regarding the Availability of Proxy Materials for the Annual Meeting: The Notice and Proxy Statement and Annual Report are available at ☑ Targeted Compensation We benchmark total compensation to the 50th ☑ Align Pay with Ourour Performance metrics. The CEO’s incentive awards are based 80% on achieving the financial metric and 20% on operational, service, growth and other non- financial metrics.☑ Focus on Long-Term Goals We believe that our incentive compensation program should be simple, transparent and easily understood by shareholders, analysts, regulators and other interested parties. Our incentive compensation program is administered substantially in the form of a long-term benefit through restricted shares of Common Stock with a five-year cliff-vesting☑ Require Stock OwnershipownershipThe Chief Executive Officer is required to beneficially hold shares of Common Stock equal in value to at least 3.0 times base salary. The Chief Financial Officer is required to beneficially hold 1.5 times base salary. All other NEOs are required to beneficially hold 1.0 times base salary by their fifth anniversary of their designation as NEOs. Direc- tors☑ Regularly Review our Comparator Group ⍉ 🚫 No Risky or Complicated Programs🚫 ⍉ No Hedges of, or Liens on, our Common Stock 🚫 ⍉ No Employment Contracts All employees of the Company, including NEOs, are “at will employees.” All NEOs of the Company do however, have Change of Control Agreements deemed to incent management to actively🚫 ⍉ No Definitive Retention of Restricted Stock Award –- Subject to ClawbackUnder our “clawback”🚫 ⍉ No Repricing or Cash Buyouts of Restricted Stock Awards We do not reprice or buy out unvested restricted Common Stock awards.Middlesex Water Company 172020 Proxy Statement(“("CD&A”&A") provides a detailed description of our executive compensation objectives, philosophy, practices and programs, as well as how the Compensation Committee determines executive compensation under those programs.programs to motivate and retain a qualified senior leadership and to ensure alignment with shareholder value creation. Our CD&A addresses the compensation of our Named Executive Officers (NEOs) that has beenwas paid, in or earned, for 2019.in 2021. Those NEOs include: 1) Dennis W. Doll, President and Chief Executive Officer, 2) A. Bruce O’Connor,O'Connor, Senior Vice President, Treasurer and Chief Financial Officer, 3) Bernadette M. Sohler, Vice President - Corporate Affairs, 4) Jay L. Kooper, Vice President, General Counsel & Secretary, and 5) Lorrie B. Ginegaw, Vice President - Human Resources.Delaware and Pennsylvania.Delaware. The Company also operates water and wastewater utility systems under contract on behalf of municipal, industrial and privatecommercial clients. In 2019,2021, we continued our focus on prudent asset management and related investmentsagain successfully navigated the challenges presented by the lingering COVID-19 pandemic while continuing to invest in regulated utility infrastructure, revenueenhance the safety and earnings growth, further developingthe skills of our workforce, demonstrating responsible business practicesmake further progress regarding our sustainability objectives and overall enhancingenhance service to our customers and returns forto our shareholders.The overarching objective of our executive compensation program is to align the interests of our shareholders and customers with those of our executive leadership. The key components of the Company’sCompany's compensation program are designed and modified, as appropriate, to ensure we attract and retain qualified executive talent and appropriately reward financial and operational performance. We continually strive to maintain a compensation program that provides an adequate balance between shorter- and longer-term operational and financial objectives and related results.20192021 compensation program was benchmarked as to base salaries, incentive compensation and total compensation.Company’sCompany's risk management philosophy. The Company’sCompany's formal Enterprise Risk Management program seeks to eliminate, mitigate or transfer risk while simultaneously maximizing opportunity for shareholders and maintaining appropriate quality service for the Company’sCompany's customers. The Corporate GovernanceProgram.Program in addition to our Environmental Social and Governance (ESG) initiatives. The Company’sCompany's compensation program seeks to achieve an appropriate balance among all these objectives and therefore, does not encourage or reward inappropriate risk-taking.Company’sCompany's equity-based incentive compensation planreviewevaluation of the Chief Executive Officer and, the other Officers of the Company. The Board has the ultimate authority to determine the compensation of all NEOs, in addition to those Officers who are not NEOs for purposes of Proxy reporting.Committee’sCommittee's scope of authority and responsibility. The Compensation Committee consists of Directors, who are all “independent,”"independent," as set forth in the listing requirements for the Nasdaq Stock Market where Middlesex Water Company is listed as a Nasdaq Global Select Company. The Corporate Governance and Nominating Committee evaluates the independence of Committee members at least annually, using standards no less restrictive than those contained in the Nasdaq Global Select listing requirements. This evaluation, and the determination that each member of the Committee is independent, was made most recently in February 2020.2022.Company’sCompany's compensation programs. In addition to providing factual information, such as Company-wide performance on relevant measures, these executives articulate management’smanagement's views and results on current compensation programs and processes, recommend relevant performance measures to be used for future evaluations and otherwise supply information to assist the Compensation Committee. Additional resources used by the Compensation Committee in their deliberations are provided by independent outsidethird-party sources, as well as by individual Committee or other Board members.market-market based information. Certain portions of such information may be providedCompany’sCompany's results of operations regarding any proposed changes to the various elements of compensation.Middlesex Water Company 182020 Proxy StatementFebruary 2020.January 2022. Executives participate in Committee activities solely in an informational and advisory capacity, and have no vote in the Committee’sCommittee's decision-making process. The Chief Executive Officer and Vice President - Human Resources do not attend those portions of Compensation Committee meetings during which their performance is evaluated or their compensation is determined. No executive officer other than the Chief Executive Officer attends those portions of Compensation Committee meetings during which the performance of the other NEOs is evaluated or their compensation is determined. In addition, the Compensation Committee meets in executive session as it considers appropriate.CompenstionCompensation Committee places no restrictions on consultants within the scope of contracted services and such consultants are not engaged by management for any purpose. The consultants provide expertise and information about competitive trends in the employment marketplace, including established and emerging compensation practices at other companies both inside and outside the Company’sCompany's comparator group. The consultants also provide Proxy Statement and survey data, and assist in assembling relevant comparator groups. In addition, the consultants also assist in establishing benchmarks for base salary and incentives from the comparator group Proxy StatementStatements and survey data.Objectives Company’sCompany's independent executive compensation consultant. Other considerations include each NEO’sNEO's individual performance in achieving both financial and non-financial corporate objectives.Company’sCompany's operations. The creation of long-term value is highly dependent on the development and effective execution by our NEOs of our business strategy.executives’executives' ability to appropriately balance the short- and long-term needs of our customers, our employees and our shareholders. We seek to not only provide safe, proper and reliable utility services on a current basis for our customers, but we also plan and execute strategies that promote the sustainability of critical utility services into the future. Promotion of the sustainability of services also includes routine Compensation Committee discussions regarding the status of succession planning initiatives at both the executive and management levels. In addition,we simultaneously seek to provide financial returns for our shareholders that appropriately reflect the risks and opportunities that are inherent in meeting the short- and long-term needs of our customers, and that are inherent in the provision of our utility services. We work to appropriately recognize further contributions to shareholder value achieved through contract operations and other complementary business opportunities which are not traditional regulated public utilities and therefore, not regulated by a state public utility commission as to customers’customers' rates and service;executives’executives' ability to attract, retain and continually develop a workforce that ensures critical technical and management skills are maintained in sufficient quantity and quality.(e.g., base(base salary incentives,)and incentives) and in the aggregate as related to total compensation. The Compensation Committee has generally established the 50th percentile of peer comparators and survey data as the target for total compensation. The Compensation Committee generally seeks to undertake a comprehensive review of the executive compensation program approximately every two years. Based on this analysis, the Compensation Committee reviews, challenges and recommends each NEO’sNEO's compensation, subject to approval by the full Board.Middlesex Water Company 192020 Proxy Statementthatwhich may result in inappropriate risk taking.NEO’sNEO's specific experience, responsibilities and performance, estimated value in the marketplace and the Committee’sCommittee's judgment of each NEO’sNEO's contribution to the success of the Company. that are not yet vested. The Company has a long-term incentive plan in the form of restricted Company common stock (the Restricted Stock Plan). Awards under this plan are considered on an annual basis and are based on the achievement of certain financial and operational goals. The ultimate value of the compensation recognized from restricted shares issued is determined as of the date vesting occurs. TheGenerally, the Restricted Stock Plan provides for five-year cliff-vesting from date of award for all shares granted in any individual year. The value of shares awarded in any given year can either increase or decrease between the date of issuance and the five-year vesting term. The Restricted Stock Plan provides for accelerated vesting in the case of a retirement. Shares vest on a pro-rated basis for retirements occurring on or after age 62 but prior to age 65. Shares fully vest for retirements occurring on or after age 65 or in the case of a Change In Control. There is no provision in the Restricted Stock Plan that specifically addresses re-pricing or cash buyouts relative to unvested restricted stock awards however, such practices are prohibited as a matter of policy and have never been employed.23.26.Company’sCompany's business plan. The target award is comprised of a single corporate financial goal, in addition to one or more individual non-financial performance goals. The corporate financial goal, for which incentive compensation was earned for 2019,2020, was budgeted Income Before Income Taxes. Separate from this metric, a qualitative assessment of financial performance relative to the company’scompany's peer group is made through an evaluation of the 3- andtotal shareholder return over a 5-year performance graphs,period, as presented as part of the Form 10-K.the individual non- financial performance goals. The non-financial individual performance goals are intended to further incent the NEOs to implement operational, technical, management and other initiatives that benefit the Company’sCompany's customers and shareholders, and which require effort and achievement above and beyond what would normally be required as part of the NEO’sNEO's base job responsibilities.Company’s “clawback”Company's "clawback" policy. Such policy requires that incentive-based awards are subject to return to the Company, in whole or in part, if a financial statement restatement occurs within the three calendar years subsequent to an award, where such restatement effectively negates the previous achievement of financial targets thatNEOother Officer from buying or selling Company Common Stock without obtaining prior approval from our Corporate Secretary and General Counsel. This policy, as an element of the Company's Insider Trading Policy, is designed to help assure that the Directors and NEOs will not trade in our securities at a time when they are in possession of inside information. In addition, our formal Insider Trading policy prohibits our Directors and NEOs from hedging the economic risk of stock ownership.NEO’sNEO's performance or achievements.Middlesex Water Company 202020Middlesex Water Company 23 2022 Proxy StatementWeOperational expertise, business continuity planning and dedicated employees are a watercritical to our ability to deliver uninterrupted utility service. Our Company's strategy is designed to meet the expectations of customers and wastewatershareholders for the long term. Investments we make currently under our Water for Tomorrow® infrastructure investment campaign are designed to benefit current and related utility services company committed to delivering quality service to thousandsfuture generations of individual homes and businesses largely in New Jersey and Delaware. The service we deliver is in itself life-sustaining. This service helps ensure public health and safety, provides fire protection, serves as a foundation for economic development and maintains and enhances the overall quality of life of our customers.operate.operate and help ensure a diverse, equitable and inclusive workplace. We expect our teams to be accountable for upholding these values each and every day as we work to fulfill our mission.Investment in projects, products and services that complement our core water and wastewater competencies,Timely and adequate recovery of infrastructure investments and other costs necessary to maintain and continually improve service quality,Prudent acquisitions of investor and municipally-owned water and wastewater utilities,Execution of municipal and industrial water and wastewater systems contracts» Investment in projects, products and services that complement our core water and wastewater competencies » Timely and adequate recovery of infrastructure investments and other costs necessary to maintain and continually improve service quality » Prudent acquisitions of investor and municipally owned water and wastewater utilities » Execution of municipal and industrial water and wastewater systems contracts 20192021 Company PerformanceIn 2019, weWe continued to strive to strengthen our reputation as a trusted service provider to our customers and as a valued employer, while we worked to further enhance value to our shareholders. The results below demonstrate somecertain key accomplishments in 2019:during 2021:✔ Led our peer group of publicly-traded water/wastewater utilities in total shareholder return. ✔ Completed construction of a $72 million upgrade to our largest treatment plant in New Jersey to include new ozone treatment, new backup electric generation systems and other improvements. ✔ Refinanced long-term debt at favorable interest rates. ✔ Enhanced the corporate sustainability reporting through our second corporate sustainability report, additional website disclosure and greater engagement with ESG ratings agencies. ✔ Entered the 26th year of our RENEW Program in which we invested more than $10 million to replace 24,800 linear feet of water main, as well as service lines, valves and fire hydrants. ✔ Commemorated the 40th Anniversary of our listing on the NASDAQ market via a virtual closing bell ringing ceremony. ✔ Continued our focus on succession planning and management development. ✔ Announced a 3% discount on all common stock purchases made under the Company's Investment Plan for a limited time. ✔ Filed for a rate adjustment for the Middlesex system in New Jersey and received approval from the New Jersey Board of Public Utilities for a $27.7 million, or a 33.6% increase in its base water rates to be phased in over two years. ✔ Announced the sale of our regulated Delaware wastewater utility operations business, Tidewater Environmental Services, Inc. ✔ Designed and implemented an interim plan to provide selected customers with an alternate water source enabling the Company to turn off wells which tested above the New Jersey standard for a specific compound. ✔ Named to the Standard & Poor's Small Cap 600 Index. ✔ Continued to focus on great governance expanding our Code of Conduct to include vendors, expanding our Insider Trading Policy and formalizing statements on human rights and diversity, equity and inclusion. ✔ Successfully concluded a 5% Discount ProgramMiddlesex Water Company 24 2022 Proxy Statement ✔ Increased the common stock dividend by 6.7%, which represents our 47th year of consecutive dividend increases,✔ Began construction of a new ozone treatment facility and various upgrades at our Carl J. Olsen Water Treatment Plant in Edison Township, NJ,✔ Concluded the public offering of 760,330 shares of common stock at a price of $60.50 per share for a total of $43.8 million,✔ Honored by2021 Executive Women of New Jersey and 2020 Women on Boards for Corporate Board Gender Diversity,✔ Concluded construction of the Western Transmission Main as part of our Water for Tomorrow®Capital Program,✔ Acquired the J.H. Wilkerson & Sons water companies in Delaware, adding over 1,000 customer connections to our regulated utility business,✔ Successfully integrated new executive-level positions into the senior management team to address succession planning and operational needs,✔ Completed $10 Million investment in drinking water infrastructure in the Borough of Carteret, NJ✔ CFO A. Bruce O’Connor assumed responsibilities as President of Tidewater Utilities, Inc.2019 Executive Compensation
Analysis and ConclusionsCompany’sCompany's most recent executive compensation study, the Company established a long-term incentive target as a percentage of base salary. The respective financial and non-financial long- term award target percentages comprising the total award target percentage for each NEO for 20192021 were as follows:
at Grant DateTarget
Restricted Stock
AwardFinancial
Target
ComponentNon-Financial
Target
ComponentDennis W. Doll $655,636 58% 80% 20% A. Bruce O’Connor $408,900 33% 60% 40% Bernadette M. Sohler $235,871 22% 60% 40% Jay L. Kooper $305,838 18% 60% 40% Lorrie B. Ginegaw $235,871 22% 60% 40%
at Grant DateTarget
Restricted Stock
AwardFinancial
Target
ComponentNon-Financial
Target
ComponentDennis W. Doll $618,000 57% 80% 20% A. Bruce O’Connor $384,664 33% 60% 40% Bernadette M. Sohler $222,331 22% 60% 40% Jay L. Kooper $288,282 18% 60% 40% Lorrie B. Ginegaw $222,331 22% 60% 40% 20192021 performance were as follows:
Restricted Stock Award
Component
Component
Restricted Stock Award
Component
ComponentDennis W. Doll 352,260 281,808 70,452 380,269 304,215 76,054 A. Bruce O’Connor 126,939 76,163 50,776 134,670 80,802 53,868 Bernadette M. Sohler 48,913 29,348 19,565 51,892 31,135 20,757 Jay L. Kooper 52,632 31 ,579 21,053 55,051 33,031 22,020 Lorrie B. Ginegaw 48,913 29,348 19,656 51,892 31,135 20,757 company’scompany's core values. Elements of such values include, but are not limited to:Company’sCompany's Code of ConductMiddlesex Water Company 212020 Proxy StatementbudgetedBudgeted Income Before Taxes, on which the financial target awards were based, was $32.5$31.7 million. This target was established to appropriately incentivize the NEOs and was based on known, anticipated and projected operational and financial opportunities and challenges in 2019.2021.Name Non-Financial Performance Metrics • GrowthExecute Debt & Equity Financing PlansIntegrate the human capital management plan with succession and diversity, equity and inclusion initiativesSuccession Planning/Organizational DevelopmentImplement strategic initiatives for long-term growth and sustainability• Execute Debt & Equity Financing PlansFully Assume Presidency of Delaware CompaniesDevelop and implement updated strategic plan for DE regulated wastewater businessBase Rate Cases & Other Regulatory ProceedingsAchieve a timely and adequate outcome regarding a New Jersey base rate filingImplementDevelop and issue updated Corporate Sustainability/ESG ReportingSustainability Report Increased Community Engagement Relative to Large Capital Projects• Equity Offering Stakeholder EngagementEstablish baseline carbon capture metrics for key operating facilities Risk ManagementImplement plans to further mitigate legal/regulatory riskIncreased RepresentationIncremental improvement in Legal & Regulatory ProceedingsEnterprise Risk Management ProgramEnterprise-wide Implementation of Requirements of New Labor LegislationRoll out enterprise wide diversity, equity and inclusion trainingIdentify/Mitigate Succession Planning Risks for Mission- Critical FunctionsImplement technology supporting the human capital management planCommittee’sCommittee's evaluation of the extent to which the financial goal was achieved, it was concluded that there were no non-recurring items that should be considered in the evaluation. The Committee further concluded the Company financial incentive target of Budgeted Income Before Income Taxes had been substantially met in 2019. The Committee considered the significant favorable impact in 2019 on Income Tax Expense, Net Income and Earnings Per Share of the Company’s implementation of the Internal Revenue Service Tangible Property Regulations. Such outcome on Income Tax Expense, Net Income and Earnings Per Share was directly attributable2021 combined with performance relative to the Company’s negotiation with its economic regulators in the most recent base rate proceeding in New Jersey.our peer group regarding total shareholder return. In addition, the Committee assessed the extent to which the non-financial incentive goals were met greater than 100% for each NEO. Consequently, the Committee, and subse quentlysubsequently the full Board, approved the following restricted stock awards:
Financial Goal
($)
Operational Goal
Operational Goal
Term Incentive
Award
Financial Goal
($)
Operational Goal
($)
Operational Goal
($)
Term Incentive
AwardDennis W. Doll 264,195 35,226 35,226 334,647 304,215 47,892 47,892 400,000 A. Bruce O’Connor 69,818 75,000 25,000 169,817 80,802 44,599 44,599 170,000 Bernadette M. Sohler 26,902 25,000 4,891 56,793 31,135 14,433 14,433 60,000 Jay L. Kooper 28,948 15,790 5,263 50,000 33,031 13,485 13,485 60,000 Lorrie B. Ginegaw 26,902 9,784 20,000 56,685 31,135 16,933 16,933 65,000 employ- eesemployees of the Company.2530 for description of limitations to participation in this Plan),page 23below for description of limitations to participation in this Plan).Middlesex Water Company 222020 Proxy StatementCompany’sCompany's NEOs are eligible to participate in a non-qualified Supplemental Executive Retirement Plan (SERP) at the discretion of the Board. A participant, who retires on their normal retirement date, as defined in the SERP, is entitled to an annual retirement benefit of up to 75% of eligible compensation, as defined in the SERP, reduced by the anticipated primary social security benefit, and further reduced by any benefit payable from the Company’sCompany's qualified defined benefit pension plan. Further reductions are made for certain retirement benefits from prior employment, where such benefits have accrued. The maximum annual retirement benefit to which two of the five NEOs may be entitled is 50% of eligible compensation.participant’sparticipant's beneficiary. A reduced benefit may be received upon Early Retirement, as defined in the SERP, after age 62 and before age 65. The default method of benefit payment is a 15-year certain payout, payable in monthly installments. Subject to approval by the Compensation Committee, the benefit may be paid in the form of a single life annuity, joint and 50% survivor’ssurvivor's annuity, joint and 100% survivor’ssurvivor's annuity, single life annuity with a ten (10) year certain period or single life annuity with a fifteen (15) year certain period. Amounts paid in any manner other than 15-year certain option are adjusted on an actuarial equivalent basis.has been establishedis required for the CEO. A beneficial stock ownership and holding requirement of 1.5 times base salary is in effectrequired for the Chief Financial Officer. A beneficial stock ownership and holding requirement of 1.0 times base salary has been establishedis required for all other NEOs. Some or all of the shares that are under beneficial ownership of each NEO may be in the form of unvested restricted stock, to which the executive does not acquire unrestricted title until such restricted stock awards fully vest.“at will”"at will" employees.Steven M. KleinJoshua Bershad, M.D.Jeffries SheinJames F. Cosgrove, Jr.
Kim C. HanemannMiddlesex Water Company 232020Middlesex Water Company 26 2022 Proxy Statement
($)
($)
Value and Non-Qualified
Deferred Comp. Earnings
CompensationDennis W. Doll
Chairman, President and
Chief Executive Officer2021 650,495 400,000 174,119 65,830 1,290,444 2020 631,549 400,000 679,154 70,791 1,781,494 2019 615,199 334,647 755,609 76,455 1,781,910
Chief Financial Officer2021 404,890 170,000 151,881 36,054 762,825 2020 393,097 170,000 474,207 36,406 1,073,710 2019 380,842 169,817 848,028 38,937 1,437,624 Bernadette M. Sohler
Vice President
Corporate Affairs2021 234,022 60,000 107,137 25,738 426,897 2020 227,705 60,000 390,598 25,086 703,389 2019 223,588 56,793 350,826 23,414 654,621 2021 304,480 60,000 — 36,325 400,805 2020 294,602 60,000 — 34,926 389,528 2019 284,369 50,000 — 33,483 367,852 Lorrie B. Ginegaw
Vice President
Human Resources2021 234,022 65,000 54,609 18,109 371,740 2020 227,205 65,000 230,203 19,017 541,428 2019 220,588 56,685 181,992 18,943 478,208 (1) Reflects the value of Restricted Stock Plan awards in the applicable year. These awards generally do not vest to the participants until the expiration of five years from the date of such award. During such five year period, the participants have contingent ownership of such shares, including the right to vote the same and to receive dividends thereon. (2) Represents the aggregate change in the actuarial present value of the accumulated benefits under all of our defined benefit pension plans for the named executive officers. The increases are primarily due to changes in the levels of qualifying compensation and an additional year of credited service. Neither an increase in or decrease in the pension value resulting from changes in the discount rate results in any increase or decrease in benefits payable to participants under the plans, other than additional credit service years for the passage of time. Mr. Kooper does not particpate in the Company's Defined Benefit (DB) Plan since his hire date was after the DB Plan was closed to new entrants. Alternatively, Mr. Kooper is the only NEO who does participates in the Company's Discretionary Profit Sharing (DPS) Plan administered through the Company's 401k Plan. See Schedule A - All Other Compensation. The Company does not have any nonqualified deferred compensation plans or related earnings. (3) The detail "All Other Compensation" recognized for the benefit of the NEOs is set forth in Schedule A as supplemental information to the Summary Compensation Table. Dividends on
Restricted
StockPersonal
Automobile
Use(4) Group Term Life
Insurance
Premiums(4) (5) 401(K) -
Employer
MatchSpouse
TravelTotal - All Other
CompensationName and Principal Position Year ($) ($) ($) ($) ($) ($) Dennis W. Doll 2021 41,606 2,985 11,089 10,150 — 65,830 Chairman, President and 2020 46,963 2,724 11,089 9,974 41 70,791 Chief Executive Officer 2019 49,452 4,369 11,911 9,799 924 76,455 A. Bruce O'Connor 2021 14,957 2,287 8,348 10,150 312 36,054 Sr. Vice President-Treasurer and 2020 15,975 2,109 8,348 9,974 — 36,406 Chief Financial Officer 2019 16,055 3,817 8,333 9,730 1,002 38,937 Bernadette M. Sohler 2021 5,764 6,519 5,165 8,190 100 25,738 Vice President 2020 6,719 6,519 5,003 6,845 — 25,086 Corporate Affairs 2019 7,106 6,519 3,157 5,924 708 23,414 Jay L. Kooper 2021 1,951 8,176 1,549 24,649 — 36,325 Vice President, 2020 1,025 8,176 1,501 24,224 — 34,926 General Counsel & Secretary 2019 263 8,176 1,245 23,799 — 33,483 Lorrie B. Ginegaw 2021 5,419 5,595 810 6,285 — 18,109 Vice President 2020 5,929 5,537 810 6,741 — 19,017 Human Resources 2019 6,165 5,537 521 6,720 — 18,943 Middlesex Water Company(4) 24The benefits available to the NEOs under these programs are also available to all other employees of the Company.(5) 2020In addition to employer matching contributions under the Company's 401k Plan, included in this column are contributions from the Company's Discretionary Profit Sharing Plan administered through the Company's 401k Plan. Mr. Kooper is the only named executive officer eligible to participate in the DPS Plan since he is ineligible to participate in the company's Defined Benefit Plan. Stock Awards
on Vesting
on VestingDennis W. Doll 9,035 713,946 A. Bruce O’Connor 2,950 233,109 Bernadette M. Sohler 1,581 124,931 Jay L. Kooper — — Lorrie B. Ginegaw 1,169 92,374
have not vested
of stock thatName (#) ($) Dennis W. Doll 36,590 4,401,777 A. Bruce O’Connor 13,309 1,601,073 Bernadette M. Sohler 5,002 601,741 Jay L. Kooper 1,948 234,344 Lorrie B. Ginegaw 4,808 578,402 2018.2021.Name Plan Years of
Credited ServicePresent Value of
Accumulated
Benefit
($)Payments
During
Last Fiscal Year
($)Plan Years of
Credited ServicePresent Value of
Accumulated
Benefit
($)Payments
During
Last Fiscal Year
($)Dennis W. Doll MWC Qualified Plan 15 862,945 — MWC Qualified Plan 17 1,134,632 — MWC SERP 15 3,263,843 — MWC SERP 17 3,845,429 — A. Bruce O’Connor MWC Qualified Plan 30 1,782,591 — MWC Qualified Plan 32 2,199,286 — MWC SERP 30 1,147,222 — MWC SERP 32 1,356,615 — Bernadette M. Sohler MWC Qualified Plan 25 1,325,924 — MWC Qualified Plan 27 1,823,659 — MWC SERP 25 — — MWC SERP 27 — — Jay L. Kooper MWC Qualified Plan 0 — — MWC Qualified Plan 0 — — MWC SERP 0 — — MWC SERP 0 — — Lorrie B. Ginegaw MWC Qualified Plan 15 437,975 — MWC Qualified Plan 17 722,790 — MWC SERP 15 — MWC SERP 17 — Middlesex Water Company 252020Middlesex Water Company 28 2022 Proxy StatementCompany’sCompany's Qualified Plan. Under the noncontributory Qualified Plan, current service costs are funded annually, as required under Internal Revenue Service guidelines and by the Qualified Plan. The Company’sCompany's annual contribution is determined on an actuarial basis. Benefits are measured from the member’smember's entry date and accrue to normal retirement date or date of early retirement. Benefits are calculated, at normal retirement, at 1.25% of pay up to the employee’semployee's Social Security benefit integration level, plus 1.9% of such excess pay, multiplied by anticipated total years of service to normal retirement date, capped at 35 years of such excess pay, multiplied by years of service achieved and not to exceed number of years of service achieved at normal retirement date of age 65. Average pay is the highest annual average of total pay during any 5 consecutive years within the 10 calendar-year period prior to normal retirement date. The benefit amounts are not subject to any deduction for Social Security benefits or other offset amounts. The benefits under the SERP are described on page 2326 of this Proxy Statement.O’ConnorO'Connor and Ms. Sohler are eligible to receive early retirement benefits under the Qualified Plan, only in the event of their retirement. If any of the aforementioned NEOs elected to receive early retirement benefits under the Qualified Plan, such benefits would be at a reduced level on an actuarial basis, as defined under the Qualified Plan for any eligible employee who elects early retirement prior to age 62. Ms. Ginegaw’sGinegaw's current age and credited years of service preclude her from qualifying for early retirement benefits under the Qualified Plan. With respect to the SERP, if participating NEOs, upon achieving age 62 and ten years of service, elect to receive early retirement benefits (defined as retirement prior to age 65 but after age 62) such benefits would be at a reduced level as defined under the SERP. Mr. Doll’s,Doll and Mr. O’Connor’s,O'Connor are eligible to receive early retirement benefits under the SERP, only in the event of their retirement. Ms.Sohler’s Sohler's and Ms. Ginegaw’sGinegaw's current age and credited years of service preclude them from qualifying for early retirement benefits under the SERP. Mr. Kooper is not a participant in the SERP. No lump sum payment of accumulated retirement benefits is provided under the Qualified Plan or the SERP.participants’participants' compensation. Mr. Kooper is a participant in the discretionary qualified defined contribution plan.executive’sexecutive's average annual total eligible compensation, as defined in the agreement, for the five (5) years prior to the termination; (b) continued coverage for three (3) years under any health or welfare plan in which the executive and the executive’sexecutive's dependents were participating; and (c) an additional amount equal to the amount of federal Excise Tax, if any, that is due or determined to be due resulting from the severance payments or any other payments under the agreement. The Company has no non-Change in Control severance arrangements. The Company does not gross- upgross-up payments for any other federal or state income or other tax under a Change in Control or, under any other agreement or plan. The benefits under any health or welfare benefit plan could end earlier than three (3) years from the date of termination and would end on the earlier of (i) the date the executive becomes covered by a new employer’semployer's health and welfare benefit plan, or (ii) the date the executive becomes eligible for Medicare. Also, coverage for the executive’sexecutive's dependents could end earlier than any of these dates if required by the health or welfare benefit plan due to age eligibility.Company’sCompany's stock plans, which are not vested on termination, shall immediately vest.Company’sCompany's employ under the terms of a Change In Control agreement within five years of the Change in Control, the executive shall be entitled to receive an annual retirement benefit equal to 75% of the executive’sexecutive's Compensation (and in some cases, 50% of Compensation) reduced by certain other benefits as more particularly set forth in the SERP. Such annual retirement benefits shall commence within sixty days after the later of (a) the executive’sexecutive's Normal Retirement Date, or (b) the executive’sexecutive's retirement or termination of employment with the Company or its successor. Unless the executive elects and receives approval of an alternative form of payment under the SERP, the executive shall receive the annual retirement benefit each year for fifteen years payable in monthly installments.Company’sCompany's employ under the terms of a Change In Control agreement, then, at the executive’sexecutive's sole option, the executive may elect to receive a reduced benefit equal to 75% of the executive’sexecutive's eligible Compensation (and in some cases, 50% of Compensation) reduced by certain other benefits as prorated and as set forth in the SERP, to commence within 60 days of separation of employment. The following table indicates the potential value the NEOs would receive in connection with termination by the Company within three years after a Change in Control of the Company. All scenarios use December 31, 2019,2021, the last business day of the Company’sCompany's most recent fiscal year, as the date for the triggering event set forth in the schedule. Additionally, the potential values to each of the NEOs also include the present value of accumulated benefits under the SERP assuming that each NEO made an election to receive such benefits within sixty days after the executive terminates employment with the Company or its successor.
During Calendar Year 2019
tion” under the Agreement)
Before Third
Anniversary (1)
($)
During Calendar Year 2021
tion” under the Agreement)
Before Third
Anniversary (1)
($)Dennis W. Doll 900,253 7,193,197 975,045 9,076,539 A. Bruce O’Connor 435,827 2,937,816 496,253 3,756,965 Bernadette M. Sohler 262,639 1,417,826 280,500 1,659,700 Jay L. Kooper 271,113 1,076,436 313,858 1,436,462 Lorrie B. Ginegaw 240,886 1,271,688 267,425 1,573,531 (1) Compensation and other benefits paid following termination on or before third anniversary of the Change in Control. Middlesex Water Company 262020Middlesex Water Company 29 2022 Proxy Statement“Dodd-Frank"Dodd-Frank Act,”" enables our shareholders to vote to approve, on an advisory (non-binding) basis, the compensation of our NEOs as disclosed in this Proxy Statement in accordance with the SEC’sSEC's rules. As previously disclosed, the Board has determined that it will hold an advisory vote on the compensation of our NEOs on an annual basis. The Compensation of our NEOs is described in the Compensation Discussion and Analysis, the compensation tables and the accompanying narrative on pages 17-2621-29 of this Proxy Statement.Company’sCompany's equity-based incentive compensation plan and conducts an annual performance review of the Chief Executive Officer and, in consultation with the Chief Executive Officer, reviews the performance of the other NEOs. The Board of Directors has ultimate authority to determine the compensation of all NEOs, including the Chief Executive Officer.Company’sCompany's compensation program are to retain, motivate, and reward employees and officers (including the NEOs) for short- and long-term performance, and to provide competitive compensation to attract appropriate talent to the Company. The methods used to achieve these goals for NEOs are influenced by the compensation and employment practices of our peers and competitors within the utilities industry, and elsewhere in the marketplace, for executive talent. Other considerations include each NEO’sNEO's individual performance in achieving both financial and non-financial corporate goals.2019,2021, the Compensation Committee believes that the total compensation for each of the NEOs is reasonable and effectively achieves the objective of aligning compensation with performance measures directly related to our financial goals and creation of shareholder value without encouraging NEOs to take unnecessary or excessive risks.“say-on-pay”"say-on-pay" vote.17-2621-29 of this Proxy Statement.Middlesex Water Company 272020Middlesex Water Company 30 2022 Proxy Statement2019 was2021 were Steven M. Klein, Chair, Dr. Joshua Bershad, Kim C. Hanemann, Amy B. Mansue and AnnVaughn L. Noble.McKoy. Mr. Klein serves as Audit Committee Chair and is the designated Audit Committee Financial Expert, as defined by the Securities and Exchange Commission (SEC). The Audit Committee operates under a written Charter adopted by the Board of Directors which is reviewed and adopted annually by the Audit Committee and the Board of Directors. The Charter is available on the Company’sCompany's website at www.MiddlesexWater.com.Company’sCompany's consolidated financial statements and internal controls. The Company’sCompany's independent accountants, Baker Tilly Virchow Krause,US, LLP (“("Baker Tilly”Tilly"), are responsible for performing an integrated independent audit of the Company’sCompany's annual consolidated financial statements and internal controls over financial reporting in accordance with the standards of the Public Company Accounting Oversight Board (PCAOB) (United States) and for issuing a report thereon. The Audit Committee’sCommittee's responsibility is to oversee the quality and integrity of the Company’sCompany's accounting, auditing and financial reporting practices. In this context, the Audit Committee meets periodically with Baker Tilly without management present.Tilly’sTilly's engagement team serving the Company, monitors rotation requirements of the Baker Tilly engagement team and interviews engagement team leadership with each rotation. The Committee also discusses with Baker Tilly the most recent Public Company Accounting Oversight BoardPCAOB inspection report for their firm. Baker Tilly has served as the Company’sCompany's independent registered public accounting firm since 2006.Company’sCompany's consolidated financial statements were prepared in accordance with generally accepted accounting principles, and the Audit Committee has reviewed and discussed1. Significant issues with regard to Baker Tilly’sTilly's appointment or retention;2. Significant risks identified during Baker Tilly’sTilly's risk assessment procedures;3. Significant changes to Baker Tilly’sTilly's planned audit strategy or to the significant risks originally identified;4. Significant accounting policies and practices and significant unusual transactions; 5. Critical accounting policies and practices; 6. Critical accounting estimates; 7. Baker Tilly’sTilly's evaluation of the quality of the Company’sCompany's financial reporting;8. Other information in documents containing audited financial statements; 9. Difficult or contentious matters for which Baker Tilly was consulted; 10. Management’sManagement's consultations with other accountants;11. Going concern considerations; 12. Uncorrected and corrected misstatements; 13. Material written communications between the Company and Baker Tilly; 14. Significant difficulties encountered in performing the audit. firm’sfirm's independence with respect to Middlesex Water Company and its management. The Audit Committee has the sole authority to pre-approve permitted non-audit services performed by Baker Tilly and has considered whether any such non-audit services, provided to the company, is compatible with maintaining their independence.Committee’sCommittee's discussions with management and Baker Tilly, the Audit Committee’sCommittee's review of the audited financial statements, the representations of management regarding the audited financial statements and the report of Baker Tilly to the Audit Committee, the Audit Committee recommended to the Board of Directors that the audited financial statements be included in the Company’sCompany's Annual Report on Form 10-K for the year ended December 31, 2019,2021, for filing with the SEC.Company’sCompany's filings with the SEC.
Joshua Bershad, M.D.
Kim C. Hanemann
Amy B. MansueAnnVaughn L. NobleMcKoyMiddlesex Water Company 282020Middlesex Water Company 31 2022 Proxy StatementVirchow Krause,US, LLP (Baker Tilly) as our independent registered public accounting firm, to issue a report to the Board and shareholders on our financial statements for the year ending December 31, 2020.2022.Under the Sarbanes-Oxley Act of 2002 and the rules of the SEC promulgated thereunder, theThe Audit Committee is solely responsible for the appointment, compensation and oversight of the work of our independent registered public accounting firm. Representatives of Baker Tilly are expected to be present at the Annual Meeting and will be afforded an opportunity to make a statement, if they so desire, and to respond to appropriate questions.Company’sCompany's independent registered public accounting firm for the years ended December 31, 20192021 and 2018.2020. Aggregate fees billed to the Company for the years ended December 31, 20192021 and 20182020 by Baker Tilly are as follows: Audit Fees {a} 544,960 421,997 Audit-Related Fees — — Total Audit and Audit-Related Fees 544,960 421,997 Tax Fees {b} 33,000 29,000 All Other Fees — — Total Fees 577,960 450,997 THE BOARD RECOMMENDS SHAREHOLDERS VOTE FOR PROPOSAL 3, THE RATIFICATION OF THE APPOINTMENT OF BAKER TILLY VIRCHOW KRAUSE, LLP. Audit Fees {a} 432,150 420,283 Audit-Related Fees — — Total Audit and Audit-Related Fees 432,150 420,283 Tax Fees {b} 31,000 32,500 All Other Fees — — Total Fees 463,150 452,783 Company’sCompany's financial statements and internal control over financial reporting, tax return preparation, and reviews of the Company’sCompany's Quarterly Reports on Form 10-Q. Recurring audit services require the pre-approval of the Audit Committee. All other permitted services with fees less than $50,000, individually and in the aggregate, are subject to the pre-approval of the Audit Committee Chair, with subsequent ratification by the Audit Committee.Middlesex Water CompanyTHE BOARD RECOMMENDS SHAREHOLDERS VOTE FOR PROPOSAL 3, THE RATIFICATION OF THE APPOINTMENT OF BAKER TILLY US, LLP. 29202023, 2020,28, 2022, the number of shares of Middlesex Water common stock beneficially owned by the elected Directors, Executive Officers named in the table appearing under Executive Compensation, and all elected Directors and Executive Officers as a group. All Directors own stock in Middlesex Water Company. Jeffries Shein owned 1.92% of the shares outstanding as of March 23, 2020. All other individual elected Directors and Executive Officers owned less than 0.57%0.79% of the shares outstanding on March 23, 2020.28, 2022.Name Total Shares Beneficially Owned (1) Directors Joshua Bershad, M.D. 138,568 James F. Cosgrove Jr. 7,0718,185Kim C. Hanemann 2,3082,285Steven M. Klein 6,5347,559Amy B. Mansue 7,7088,733Vaughn L. McKoy 225 Ann L. Noble 6261,663Walter G. Reinhard 7,776Jeffries Shein334,7547,151Named Executive Officers Dennis W. Doll 99,40389,002 A. Bruce O'Connor 37,00131,029 Bernadette M. Sohler 10,4297,427Jay L. Kooper 3571,948Lorrie B. Ginegaw 9,3249,177All elected Directors and Executive Officers as a group including those named above. (15(16 people)545,000 336,463*3.13%1.92% of the shares outstanding on March 23, 2020.28, 2022. Percentage of each individual is based on 17,439,29917,551,345 shares outstanding as of March 23, 2020.28, 2022.
Reporting ComplianceCompany’sCompany's equity securities are required to file reports of ownership and changes in ownership with the SEC on specified due dates. Based solely on a review of the copies of these reports furnished to us, we believe that all filing requirements applicable to such Officers and Directors (we are not aware of any five percent holder) were met during 2019.2021.23, 2020,28, 2022, certain information with respect to the beneficial ownership of shares of Common Stock by each person or group we know to beneficially own more than five percent of the outstanding shares of such stock.Name and Address of Beneficial Owners Number of Shares Percent of Class 2,746,370 (1) 15.7% T. Rowe Price Associates, Inc.
100 East Pratt Street
Baltimore, MD 212021,767,006 (1)10.1%BlackRock Institutional Trust Company400 Howard StreetSan Francisco, CA 941051,330,3561,509,295 (2)7.7%8.6%The Vanguard Group
100 Vanguard Boulevard
Malvern, PA 193551,073,2961,290,969 (3)6.15%7.3%
(2) This information is based on a Schedule 13G Combined filed with the SEC on February 14, 2022.
(3) This information is based on a Schedule 13G Combined filed with the SEC on February 9, 2022.(1)This information is based on a Schedule 13G Combined filed with the SEC on January 31, 2020.(2)This information is based on a Schedule 13G Combined filed with the SEC on February 5, 2020.(3)This information is based on a Schedule 13G Combined filed with the SEC on February 10, 2020.20192021 Annual Report on Form 10-K filed by the Company, including the financial statement and schedules, but without exhibits, can be mailed without charge to any shareholders. The exhibits are obtainable from the company upon payment of the reasonable cost of copying such exhibits.20192021 Annual Meeting of Shareholders20192021 Annual Meeting of Shareholders will be submitted at the Annual Meeting for the correction of any errors or omissions but not for the approval of the matters referred to therein.Middlesex Water Company 302020Middlesex Water Company 33 2022 Proxy StatementMiddlesex Water Company 312020Middlesex Water Company 36 2022 Proxy Statement Delta Hotels by Marriott Woodbridge515 US Highway 1 South Iselin, New Jersey 08830FROM GARDEN STATE PARKWAY (NORTH)Take Exit 131A to the fourth traffic light. Tum right onto Middlesex-Essex Turnpike and proceed (about 1/2 mile) to the third traffic light (Gill Lane). Turn right and take Gill Lane all the way up passing Ronson Road. Turn right onto Route 1 and the venue will be on the right hand side by Kona Grill.FROM GARDEN STATE PARKWAY (SOUTH)Take Exit 130 to Route 1 North. After first traffic light, take reverse jug handle to Woodbridge Center Drive. Make a left onto Route 1 South and the venue will be on the right hand side by Kona Grill.FROM NEW JERSEY TURNPIKE (NORTH OR SOUTH)Take Exit 11 onto the Garden State Parkway North and follow above directions.FROM US ROUTE NO. 1 (NORTH OR SOUTH)Proceed to the Woodbridge Center area. If southbound, continue past Woodbridge Center Drive and the venue will be on the right hand side by Kona Grill. If northbound, take reverse jug handle to Woodbridge Center Drive. Make a left onto Route 1 South and the venue will be on the right hand side by Kona Grill. *** Exercise Your Right to Vote *** Important Notice Regarding the Availability of Proxy Materials for the Shareholder Meeting to Be Held on May 19, 2020. Meeting Information MIDDLESEX WATER COMPANY Meeting Type: Annual Meeting For holders as of: March 23, 2020 Date: May 19, 2020 Time: 11:00 AM EDT Location: Delta Hotels by Marriott Woodbridge 515 U.S. Highway 1 South Iselin, NJ 08830 Meeting live via the Internet-please visit www.virtualshareholdermeeting.com/MSEX2020. You are receiving this communication because you hold shares in the company named above. This is not a ballot. You cannot use this notice to vote these shares. This communication presents only an overview of the more complete proxy materials that are available to you on the Internet. You may view the proxy materials online at www.proxyvote.com or easily request a paper copy (see reverse side). We encourage you to access and review all of the important information contained in the proxy materials before voting. 485C ROUTE 1 SOUTH SUITE 400 ISELIN, NJ 08830 E99586-P37362 See the reverse side of this notice to obtain proxy materials and voting instructions. Before You Vote How to Access the Proxy Materials Proxy Materials Available toSCAN TO VIEW or RECEIVE: NOTICE AND PROXY STATEMENT ANNUAL REPORT How to View Online: Have the information that is printed in the box marked by the arrow XXXX XXXX XXXX XXXX (located on the following page) and visit: www.proxyvote.com. How to Request and Receive a PAPER or E-MAIL Copy: If you want to receive a paper or e-mail copy of these documents, you must request one. There is NO charge for requesting a copy. Please choose one of the following methods to make your request: 1) BY INTERNET: www.proxyvote.com 2) BY TELEPHONE: 1-800-579-1639 3) BY E-MAIL*: sendmaterial@proxyvote.com * If requesting materials by e-mail, please send a blank e-mail with the information that is printed in the box marked by the arrow XXXX XXXX XXXX XXXX (located on the following page) in the subject line. Requests, instructions and other inquiries sent to this e-mail address will NOT be forwarded to your investment advisor. Please make the request as instructed above on or before May 5, 2020 to facilitate timely delivery. How To Vote Please Choose One of the Following Voting Methods E99587-P37362 Vote In Person: Many shareholder meetings have attendance requirements including, but not limited to, the possession of an attendance ticket issued by the entity holding the meeting. Please check the meeting materials for any special requirements for meeting attendance. At the meeting, you will need to request a ballot to vote these shares. Vote By Internet: Before The Meeting: Go to www.proxyvote.com. Have the information that is printed in the box marked by the arrow XXXX XXXX XXXX XXXX (located on the following page) available and follow the instructions. During The Meeting: Go to www.virtualshareholdermeeting.com/MSEX2020. Have the information that is printed in the box marked by the arrow XXXX XXXX XXXX XXXX (located on the following page) available and follow the instructions. Vote By Mail: You can vote by mail by requesting a paper copy of the materials, which will include a proxy card. The Board of Directors recommends you vote FOR the following: 1. Election of Director Nominee: 01) James F. Cosgrove Jr. The Board of Directors recommends you vote FOR the following proposal: 2. To provide a non-binding advisory vote to approve named executive officer compensation. The Board of Directors recommends you vote FOR the following proposal: 3. To ratify the appointment of Baker Tilly Virchow Krause, LLP as the Company's independent registered public accounting firm for the fiscal year ending December 31, 2020. NOTE: We may also transact such other business that may properly come before the meeting or any postponement or adjournment thereof. E99588-P37362 E99589-P37362Before The Meeting - Go to www.proxyvote.com or scan the QR Barcode above Use the Internet to transmit your voting instructions and for electronic delivery of information up until 11:59 p.m. Eastern Time the day before the cutoffcut-off date or the meeting date. Have your proxy card in hand when you access the web site and follow the instructions to obtain your records and to create an electronic voting instruction form. During The Meeting - Go to www.virtualshareholdermeeting.com/MSEX2020MSEX2022 You may attend the meeting via the Internet and vote during the meeting. Have the information that is printed in the box marked by the arrow available and follow the instructions. VOTE BY PHONE - 1-800-690-6903 Use any touch-tone telephone to transmit your voting instructions up until 11:59 p.m. Eastern Time the day before the cutoffcut-off date or meeting date. Have your proxy card in hand when you call and then follow the instructions. VOTE BY MAIL Mark, sign and date your proxy card and return it in the postage-paid envelope we have provided or return it to Vote Processing, c/o Broadridge, 51 Mercedes Way, Edgewood, NY 11717. 485C ROUTE 1 SOUTH SUITE 400 ISELIN, NJ 08830 E99583-P37362TO VOTE, MARK BLOCKS BELOW IN BLUE OR BLACK INK AS FOLLOWS: THIS PROXY CARD IS VALID ONLY WHEN SIGNED AND DATED. KEEP THIS PORTION FOR YOUR RECORDS DETACH AND RETURN THIS PORTION ONLY The Board of Directors recommends you vote FOR the following: For Withhold For All Withhold All For All Except To withhold authority to vote for any individual nominee(s), mark "For“For All Except"Except” and write the number(s) of the nominee(s) on the line below. MIDDLESEX WATER COMPANY1. Election of Directors Nominees 0 0 0 01) Steven M. Klein 02) Amy B. Mansue 03) Walter G. Reinhard 04) Vaughn L. McKoy The Board of Directors recommends you vote FOR the following: ! ! ! 1. Election of Director Nominee: 01) James F. Cosgrove Jr.proposals 2 and 3. For Against Abstain The Board of Directors recommends you vote FOR the following proposal: ! ! ! 2. To provide a non-binding advisory vote to approve named executive officer compensation. The Board of Directors recommends you vote FOR the following proposal: For Against Abstain ! ! ! 3. To ratify the appointment of Baker Tilly Virchow Krause,US, LLP as the Company's independent registered public accounting firm for the fiscal year ending December 31, 2020.2022. NOTE: We may also transact such other business that may properly come before the meeting or any postponement or adjournment thereof. ! For address changes and/or comments, please check this box and write them on the back where indicated. ! ! Please indicate if you plan to attend this meeting. Yes No Please sign exactly as your name(s) appear(s) hereon. When signing as attorney, executor, administrator, or other fiduciary, please give full title as such. Joint owners should each sign personally. All holders must sign. If a corporation or partnership, please sign in full corporate or partnership name by authorized officer. 0 0 0 0 0 0 Signature [PLEASE SIGN WITHIN BOX] Date Signature (Joint Owners) Datewww.proxyvote.com. E99584-P37362www.proxyvote.com MIDDLESEX WATER COMPANY Annual Meeting of Shareholders May 19, 202023, 2022 This proxy is solicited by the Board of Directors The shareholder(s) hereby appoint(s) Kim C. HanemannJames F. Cosgrove, Jr. and Ann L. NobleJoshua Bershad, M.D., or either of them, as proxies, each with the power to appoint herhis substitute, and hereby authorize(s) them to represent and to vote, as designated on the reverse side of this ballot, all of the shares of Common Stock of Middlesex Water Company that the shareholder(s) is/are entitled to vote at the Annual Meeting of Shareholders, to be held virtually at www.virtualshareholdermeeting.com/MSEX2022 at 11:00 a.m., on May 19, 2020, at Delta Hotels by Marriott Woodbridge, 515 U.S. Highway 1 South, Iselin, NJ 08830,23, 2022, and any adjournment or postponement thereof. THIS PROXY, WHEN PROPERLY EXECUTED, WILL BE VOTED AS DIRECTED BY THE SHAREHOLDER(S). IF NO SUCH DIRECTIONS ARE MADE, THIS PROXY WILL BE VOTED FOR THE ELECTION OF THE NOMINEENOMINEES LISTED ON THE REVERSE SIDE FOR THE BOARD OF DIRECTORS, FOR THE APPROVAL, BY NON-BINDING VOTE, OF THE COMPENSATION OF OUR NAMED EXECUTIVE OFFICERS AND FOR RATIFICATION OF THE APPOINTMENT BY THE AUDIT COMMITTEE OF THE INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM. Address Changes/Comments: _______________________________________________________________________________ ________________________________________________________________________________________________________ (If you noted any Address Changes/Comments above, please mark corresponding box on the reverse side.) Continued and to be signed on reverse side