Cadiz Inc. faces Investor Investigation In Connection With Executive Pay Increase

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An investigation on behalf of current long term investors in shares of Cadiz Inc. (NASDAQ: CDZI) concerning possible breaches of fiduciary duties related to potential excessive compensation that was awarded to certain officers and executives at Cadiz Inc. was announced.

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) rose from as low as $6.03 in April 09 to $14.27 in May 2010, NASDAQ CDZI stock fell before 2009 from as high as $25 per share in 2007 and traded recently at roughly $11.30 per share.

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’ or retirement compensation that were excessive or unwarranted based on the Cadiz’ performance as compared to what senior officers and executives at comparable companies were making and/or results that were fraudulent, misleading or not long-lasting.

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.