Cesar L. Alvarez
WATSCOAbout Cesar L. Alvarez
Cesar L. Alvarez, age 77, is a Class B Director and Co‑Vice Chairman of Watsco, serving on the Board since 1997 with a hiatus from 2015–2017; his current term expires in 2026 . He holds a law degree and an MBA from the University of Florida and is Senior Chairman of Greenberg Traurig, which he helped grow into a top‑ten U.S. law firm over ~30 years . He is designated independent under NYSE guidelines and was a 100% attendee of Board and committee meetings in 2024 .
Past Roles
| Organization | Role | Tenure | Committees / Impact |
|---|---|---|---|
| Watsco, Inc. | Class B Director; Co‑Vice Chairman | Director since 1997; hiatus 2015–2017; Co‑Vice Chair currently; term ends 2026 | Member, Strategy Committee; long‑standing governance and business‑building expertise |
| Greenberg Traurig, P.A. | Senior Chairman | ~30 years building firm | Helped scale firm to top‑ten U.S. law firm; extensive corporate governance experience |
External Roles
| Organization | Role | Tenure | Committees / Impact |
|---|---|---|---|
| Precigen, Inc. | Director; Chair of Nominating & Governance | Current | Leads board governance at a clinical‑stage pharma company |
| The St. Joe Company | Director | Current | Member of Audit, Compensation, and Governance Committees |
Board Governance
- Committee assignments (2024): Strategy Committee member; not on Audit, Compensation, or Nominating & Governance .
- Chair/lead roles: Co‑Vice Chairman of the Board; presides when Chairman absent and engaged on succession; Lead Independent Director is J. Michael Custer (not Alvarez) .
- Independence: Board affirmatively determined Alvarez is independent under NYSE rules .
- Attendance & engagement: Board met 4 times in 2024; committees met Audit (6), Compensation (6), Nominating & Governance (3), Strategy (1); Alvarez attended 100% of Board and applicable committee meetings; directors also attended the 2024 annual meeting .
- Executive sessions: Independent directors hold formal executive sessions at least annually .
Fixed Compensation
| Year | Cash Retainer (Director) | Committee Chair/Member Fees | Meeting Fees |
|---|---|---|---|
| 2024 | — | — (no chair roles) | — (no meeting fees program disclosed) |
Watsco’s director compensation is awarded “from time to time” as stock options at the Chairman’s discretion (in consultation with Comp and Nominating & Governance); options vest over 2 years and expire after 5 years; directors receive no tax gross‑ups; management directors receive no board compensation .
Performance Compensation
| Component | Structure | Grant cadence | Vesting | Expiration | Performance metrics |
|---|---|---|---|---|---|
| Director stock options | Options granted at discretion of Chairman after consultation | From time to time | 2‑year vest | 5‑year term | None disclosed for directors; grants are not tied to specific annual performance metrics |
| Outstanding Options (12/31/2024) | Intrinsic Value (12/31/2024) |
|---|---|
| 2,500 | $747,050 |
Alvarez received no new option awards or cash fees in 2024 .
Other Directorships & Interlocks
| Company | Sector relevance to WSO | Potential interlock/conflict notes |
|---|---|---|
| Precigen, Inc. | Clinical‑stage pharma (limited operating overlap) | No WSO‑related transactions disclosed . |
| The St. Joe Company | Florida land development (non‑supplier/customer) | No WSO‑related transactions disclosed; committee memberships noted . |
Expertise & Qualifications
- Credentials: Law and MBA (University of Florida); Senior Chairman of Greenberg Traurig; extensive corporate governance and business‑building experience .
- Skills matrix: Public company board service; corporate governance; regulation; social/leadership; entrepreneurial background; Board years (non‑management) 26 .
Equity Ownership
| Item | Amount | Notes |
|---|---|---|
| Common shares beneficially owned | 900 (less than 1%) | 400 directly owned; 500 issuable upon exercise of presently exercisable options |
| Outstanding options | 2,500 | Intrinsic value $747,050 as of 12/31/2024 |
| Ownership guideline | Minimum $100,000 of stock/equity; all directors met requirements as of 12/31/2024 | Measured using average price methodology |
| Pledging/Hedging | Prohibited for directors and NEOs | Insider trading policy and governance codes in place |
Governance Assessment
- Strengths
- Independence, strong attendance (100%), and deep governance/legal expertise bolster board effectiveness .
- Co‑Vice Chairman role and Strategy Committee membership support long‑term strategy oversight and succession preparedness .
- Ownership alignment via equity and adherence to director stock ownership guidelines; prohibitions on hedging/pledging reduce misalignment risks .
- Potential conflicts and mitigants
- Related‑party exposure: Watsco paid ~$279,000 in 2024 to Greenberg Traurig for compliance‑related legal services; Alvarez is Senior Chairman at GT. Audit Committee pre‑approved under formal policy; Board reaffirmed Alvarez’s independence; Alvarez provided no services and had no material direct/indirect interest in payments; arrangement expected to continue. Flag for ongoing monitoring but mitigated by policy and oversight .
- Director pay mix and signals
- No 2024 cash or new option awards to Alvarez; WSO’s director program uses options with short vest/term; lack of meeting fees and no tax gross‑ups viewed as shareholder‑friendly. Continue to watch cadence of option grants for directors over time .
- Overall view
- Alvarez’s profile adds legal/governance depth with multi‑company board experience; independence and attendance are positives. The GT relationship is a manageable related‑party risk under current controls but warrants periodic review for quantum and scope.