John Carroll Lenderking
About John Carroll Lenderking
John Carroll Lenderking is Senior Vice President, Water Resources and Legislative Affairs at Global Water Resources (GWRS), age 51 as of March 17, 2025 . He has served as SVP since March 9, 2021, following roles as VP of Water Resources (Feb 2020–Mar 2021) and Director of Water Resources (Mar 2018–Feb 2020) . He holds a B.S. in Environmental Resources (Watershed Ecology) from Arizona State University and an MBA from Thunderbird School of Global Management . Company-level performance context during his tenure: 2024 total revenue was $52.7 million (−0.6% YoY), adjusted EBITDA was $26.7 million (+5.2% YoY), and net income was $5.8 million (−27.5% YoY), with the YoY declines primarily due to non-recurring 2023 ICFA revenue; adjusted net income was $6.3 million (+2.0% YoY) . Pay-versus-performance TSR values show a $100 initial investment valued at $92.67 (2022), $91.60 (2023), and $84.52 (2024) .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Global Water Resources (GWRS) | Senior Vice President, Water Resources & Legislative Affairs | Mar 2021–present | Leads water resources strategy and legislative affairs . |
| Global Water Resources (GWRS) | Vice President, Water Resources | Feb 2020–Mar 2021 | Advanced water resource management functions . |
| Global Water Resources (GWRS) | Director, Water Resources | Mar 2018–Feb 2020 | Built internal water resources capabilities . |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| EPCOR Water (utility) | Manager of Water Resources | 2007–Mar 2018 | Managed utility water resources across the Phoenix area . |
| City of Phoenix – Water Conservation Office | Water resources staff; managed Demand Management Plan and Residential Retrofit Program | 2007 | Assisted city water resource management and demand-side programs . |
| Arizona Department of Water Resources (ADWR) | Various roles; oversaw review of Phoenix AMA recharge/recovery applications | Pre-2007 | Regulator-side oversight of recharge and recovery applications . |
Fixed Compensation
- GWRS executives are compensated with base salary, annual incentive awards, and long-term incentive awards; the program aims to align executives and stockholders through equity-linked pay and objective-based targets .
- The Compensation Committee engaged FW Cook in 2023 to benchmark pay versus a 16-company utility/energy peer group; analysis found average target annual compensation for NEOs below the 25th percentile, informing 2024 pay actions .
- Base salary review process (for executives generally) considers scope, experience, market comparables; the Board approved a 5% base salary increase for 2024 for the listed NEOs to improve competitiveness; Lenderking’s individual base salary is not disclosed in the proxy .
Performance Compensation
- GWRS’s 2024 Incentive Program used four equally weighted components designed to balance compliance/safety, EBITDA discipline, capital project execution, and discretionary operational outcomes .
- Cash-settled RSUs from annual incentive awards vest ratably over 12 consecutive quarters from grant date; RSUs are liability awards with dividend equivalents paid on common-share dividends .
| Metric | Weight | Target | Actual/Outcome | Payout |
|---|---|---|---|---|
| Compliance & Safety | 25% | No compliance events; safety/IT metrics per program | No compliance events or safety incidents; safety goals met | 25.0% |
| Further Adjusted EBITDA | 25% | $22.9M budget; payout scale ranges to 100% at ≥$22.9M | $23.2M achieved; 100% of payout scale | 25.0% |
| Capital Expenditures | 25% | $31.0M approved (ex-growth/acquisitions); overage reduces pool | $25.6M; 100% payout scale achieved | 25.0% |
| Board Discretionary | 25% | Discretionary based on operations, service, regulatory, H&S, water loss | Board awarded full discretionary amount | 25.0% |
| Total | 100% | 100% of overall incentive pool earned | 100.0% |
Equity Ownership & Alignment
- Beneficial ownership for directors and NEOs is disclosed; Lenderking is not a named executive officer, so his personal share ownership is not listed in the 2025 proxy’s ownership table .
- Insider trading policy prohibits short sales, options trading, hedging/monetization arrangements, and holding securities in margin accounts; pledging is generally prohibited except in limited cases with Audit & Risk Committee pre-approval—supporting alignment and limiting forced-selling risk .
- GWRS used RSUs and restricted stock in recent programs; company awarded no options/SARs for 2024 performance, indicating a shift away from options to RSUs/RSA, potentially lowering repricing risk and emphasizing retention .
Employment Terms
- GWRS disclosed New Employment Agreements effective Jan 1, 2025 for the CEO, CFO, and COO, with target incentive opportunities, restricted stock grants in 2025–2026, and cash-only incentives from 2027 onward; agreements automatically renew unless notice is given .
- Termination and Change-of-Control economics for the CEO, CFO, and COO provide multiples of base salary (6.0x, 5.4x, 4.35x respectively) and full vesting of equity upon certain terminations; includes a 280G “best-net” cutback provision; Lenderking’s individual employment terms are not disclosed .
Performance & Track Record
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Pay-versus-Performance TSR – Value of $100 Investment ($) | $92.67 | $91.60 | $84.52 |
| Net Income ($USD thousands) | $5,506 | $7,982 | $5,789 |
| Metric | 2023 | 2024 |
|---|---|---|
| Total Revenue ($USD thousands) | $53,028 | $52,692 |
| Adjusted EBITDA ($USD thousands) | $25,336 | $26,653 |
- Operational context: active service connections increased 4.4% to 64,520; water consumption rose 3.3% to 4.16 billion gallons; $32.3M invested in infrastructure in 2024 .
- Strategy context: near-term growth via connection growth, operating efficiencies, and regulated rate increases; continued aggregation of water/wastewater utilities .
Compensation Committee Analysis
- Independent consultant FW Cook engaged in April 2023; peer group of 16 utilities/energy firms used for benchmarking (American States Water, Artesian Resources, California Water Service, Chesapeake Utilities, Consolidated Water, Genie Energy, Middlesex Water, Northwest Natural, Otter Tail, Pure Cycle, RGC Resources, SJW Group, Suburban Propane Partners, Unitil, Via Renewables, York Water) .
Risk Indicators & Red Flags
- Hedging/pledging restrictions and margin prohibitions reduce misalignment and potential forced selling/pledging risks .
- No option/SAR awards for 2024 performance reduces option repricing risk .
- Section 16(a) delinquent filing disclosure lists late filings by certain insiders, but does not list Lenderking, indicating no reported filing delinquency for him in the most recent year .
Investment Implications
- Alignment: Company-wide incentive framework ties executive awards to compliance/safety, EBITDA discipline, and capital execution—mechanisms likely applicable to Lenderking’s annual incentives and conducive to operational execution and cash discipline .
- Retention: RSUs with 12-quarter ratable vesting and RSA programs support retention; strong anti-hedging/pledging policy lowers forced-sale/pledging risk .
- Transparency gap: Lenderking is not a named executive officer; his specific salary, incentive targets, and holdings are not disclosed, limiting precision in pay-for-performance and ownership analysis .
- Company performance supports incentives: adjusted EBITDA growth (+5.2% YoY) and 100% incentive pool achievement in 2024 indicate operational execution, though TSR has been negative over the three-year PVP horizon—watch for alignment between incentive metrics and long-run TSR .