If you purchased shares of Cadiz Inc. (NASDAQ:CDZI)
The investigation by a law firm focuses on whether the directors and officers of Cadiz Inc. harmed the company by breaching their fiduciary duties to shareholders. In particular the investigation on behalf of current long term investors in Cadiz (NASDAQ: CDZI) focuses on possible shareholder claims that certain of Cadiz’ senior officers and executive were unjustly enriched through their receipt of unwarranted, excessive or unearned compensation in past years. Specificallly the investigation focuses on the decision by the company's board of directors to dramatically increase executive compensation by as much as 210% for fiscal year 2010, despite Cadiz's meager financial performance during the same period.
In fact, the Chairman and Principal Executive Officer’s pay rose from roughly $748,000 in 2009 to $2.32million in 2010 and the Principal Financial Officer’s compensation increased from about $471,000 in 2009 to $1.17million in 2010.
However, Cadiz’ shareholders recently expressed their disdain for the executive pay packages by voting “no” on Cadiz’ say on pay provision. Cadiz Inc. received only less than 40% support for its pay practices at its June 2 annual meeting, according to a company filing.
The investigation concerns possible claims that the prior compensation awarded Cadiz Inc. is improper based upon its current operating condition.
Cadiz Inc’s annual Total Revenue over the past four filing periods slightly improved from $0.43million in 2007 to $1.02million in 2010. However Cadiz Inc. was not able to report annual Net Income over the same time frame, but rather had to report Net Losses ranging from $13.63million to $15.91million over the past four filing periods.
Even though shares of Cadiz Inc. (Public, NASDAQ:CDZI)
The investigation seeks to determine whether certain senior officers and executives at Cadiz Inc. (CDZI) were awarded salaries, bonuses, stock options and other forms of long-term, ‘incentive’
Finally the investigation focuses also on possible shareholder claims that would allow NASDAQ:CDZI stockholders to more efficiently influence or control future compensation decisions at Cadiz Inc.
Those who are current long term investors in Cadiz Inc. (Public, NASDAQ:CDZI)
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