Company: MSEX
Filing Date: 2025-04-10
Form Type: DEF 14A
Source: 0001174947-25-000561
Chunk: 31

Company: MIDDLESEX WATER CO
Filing Date: 2025-04-10
Form: DEF 14A
Chunk 31
---
                                                                                   
 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 officers are influenced by the compensation and employment practices of a comparator group, as adopted in consultation with the Company’s independent Executive compensation consultant. Other considerations include each officer’s individual performance in achieving both financial and non-financial corporate objectives. Our program is designed to compensate the officers based on their level of assigned responsibilities, individual experience and performance levels and their knowledge and management of the Company’s operations. The creation of long-term value for shareholders is highly dependent on the development and effective execution by our NEOs of our business strategy. Factors that influence the design of our Executive compensation program include, among other things, various items listed as follows:

| • | Considering our regulatory environment, given that our operations primarily occur in a highly regulated utility industry with regard       
 to public health and safety, the environment, service levels to our customers and the rates for utility services charged to our customers. |

| • | Recognizing industry-specific experience that promotes safe, proper and reliable life-sustaining utility services for our customers; |

| • | Valuing our 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 and reliable utility services 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 inherent in meeting the short- and long-term needs of our customers, and inherent in the provision of our utility services; |

| • | Rewarding appropriately 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’ rates and service;.                                                                                                     |

| • | Recognizing our Executives’ ability to attract, retain and continually develop a workforce that ensures critical technical and 
 management skills are maintained in sufficient quantity and quality.                                                           |

Generally, 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)