Consolidated Water (NASDAQ: CWCO) sets pay terms for new accounting chief
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Consolidated Water Co. Ltd. has promoted Douglas Vizzini from Vice President of Finance to Executive Vice President and Chief Accounting Officer and entered into a new employment agreement effective April 1, 2026 through December 31, 2027.
The agreement provides a $350,000 annual base salary, company‑paid medical insurance, and a monthly automobile allowance starting at $1,750. Vizzini is eligible for annual cash incentives targeted at 25% of base salary and annual restricted stock unit grants equal to 20% of base salary, with multi‑year vesting.
The CEO may annually extend the term to maintain a two‑year horizon; if not extended, Vizzini receives lump‑sum severance equal to one year of base salary. The agreement also details termination, disability, and forfeiture terms, including reduced salary and suspended bonus eligibility during extended incapacity.
Positive
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8-K Event Classification
2 items: 5.02, 9.01
2 items
Item 5.02
Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers
Governance
Key personnel changes including departures, elections, or appointments of directors and executive officers.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Base salary: $350,000 per year
Automobile allowance: $1,750 per month
Short-term incentive target: 25% of base salary
+4 more
7 metrics
Base salary
$350,000 per year
Annual base salary under employment agreement
Automobile allowance
$1,750 per month
Allowance for remainder of first calendar year, increasing $50 each January 1
Short-term incentive target
25% of base salary
Target annual bonus opportunity tied to company and individual performance
Annual RSU grant value
20% of base salary
Yearly restricted stock units starting fiscal 2026, based on prior year closing price
Severance amount
One year of base salary
Lump-sum payment if CEO elects not to extend term and employment ends
Initial incapacity period
60 consecutive days
Duration of illness before duties cease and salary reduced
Agreement term end point
December 31, 2027
Stated end date of employment agreement, subject to CEO extensions
Key Terms
restricted stock units, short‑term incentive compensation, equity incentive plan, vest, +1 more
5 terms
restricted stock units financial
"Mr. Vizzini will be granted restricted stock units (“RSUs”) under the Company’s equity incentive plan"
Restricted stock units are a type of company reward where employees are promised shares of stock, but they only fully own these shares after meeting certain conditions, like staying with the company for a set time. They matter because they can become valuable assets and are often used to motivate employees to help the company succeed.
short‑term incentive compensation financial
"Mr. Vizzini is eligible to receive annual short‑term incentive compensation targeted at 25% of base salary"
equity incentive plan financial
"RSUs under the Company’s equity incentive plan with a grant date value equal to 20% of base salary"
An equity incentive plan is a program that gives employees, executives or directors the right to receive company stock or options to buy stock as part of their pay. Think of it as offering slices of future company profit to motivate people to boost long‑term performance; for investors it matters because it can align employee goals with shareholder value but also increases the number of shares outstanding, which can dilute existing ownership.
vest financial
"One‑third of each annual RSU grant will vest at the end of the fiscal year of grant"
A vest is the process by which an employee earns the right to receive certain benefits or ownership interests, such as stock or retirement funds, over time. It’s similar to earning a reward gradually, ensuring that the benefit becomes fully yours only after a set period or meeting specific conditions. This makes it important for investors because it determines when they can actually claim or use those benefits.
severance amount financial
"the Company will pay Mr. Vizzini a lump-sum severance amount equal to his then-current annual base salary"
FAQ
What executive change did Consolidated Water (CWCO) report on April 1, 2026?
Consolidated Water promoted Douglas Vizzini from Vice President of Finance to Executive Vice President and Chief Accounting Officer. The company entered into a new employment agreement with him effective April 1, 2026, setting his compensation, incentives, and employment term through December 31, 2027.
What is Douglas Vizzini’s base salary under the new CWCO employment agreement?
The agreement sets Douglas Vizzini’s annual base salary at $350,000, payable semi‑monthly in arrears. This salary is subject to annual review by the CEO but may not be reduced. The company also pays the full cost of his medical insurance under its standard employee coverage.
How are bonuses and incentives structured for CWCO’s new Chief Accounting Officer?
Douglas Vizzini is eligible for annual short‑term incentive compensation targeted at 25% of base salary. Actual payouts depend on Consolidated Water’s performance against Board‑approved financial targets and individual goals set by the CEO, with bonuses paid no later than April 1 following each fiscal year.
What equity compensation will Douglas Vizzini receive from Consolidated Water (CWCO)?
At the beginning of each fiscal year during the agreement term, starting in 2026, Vizzini will receive restricted stock units with a grant date value equal to 20% of base salary. These RSUs vest in three equal installments over three fiscal years, subject to continued service.
What severance protection does the CWCO employment agreement give Douglas Vizzini?
If the CEO chooses not to extend the agreement so that two full calendar years remain, Consolidated Water must notify Vizzini by August 31. In that situation, he receives a lump‑sum severance payment equal to his then‑current annual base salary, payable on or before December 31.
How does Consolidated Water handle disability or incapacity under Vizzini’s contract?
If physical or mental illness prevents Vizzini from performing his duties for 60 consecutive days, his duties cease, salary drops to $1,000 per year, and bonus eligibility is suspended, while medical insurance continues. If incapacity lasts 12 months, the agreement is deemed terminated by mutual consent.