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

The investigation by a law firm focuses on whether the directors and officers of PICO Holdings Inc harmed the company by breaching their fiduciary duties to shareholders. In particular the investigation on behalf of current long term investors in PICO Holdings (PICO) focuses on possible shareholder claims that certain of PICO Holdings senior officers and executive were unjustly enriched through their receipt of unwarranted, excessive or unearned compensation in past years.

PICO Holdings CEO compensation rose between 2008 and 2010 almost eight times from $1.82million in 2008 to $14.278million in 2010, including a $12.276million stock award.

However, PICO Holdings shareholders recently expressed their disdain for executive pay packages by voting no on PICO Holdings say on pay provision. PICO Holdings Inc received only 39 % support for its pay practices at its May 13 annual meeting, according to a company filing.

The investigation concerns possible claims that the prior compensation awarded at PICO Holdings Inc is improper based upon its current operating condition.
PICO Holdings 12months Revenue declined from $60.35million in 2008 to $16.03million in 09, respectively $32.17million in 2010. Its Net Income of $28.63million for 2009 fell to a Net loss of $18.04million for 2009 and a Net Loss of $11.17million in 2010. For the first quarter in 2011 PICO Holdings Inc reported a quarterly Net Loss of $2.10million.

Shares of PICO Holdings Inc (Public, NASDAQ:PICO) reached in 2008 as high as $47.64 per share and traded recently at $27.39 per share.

The investigation seeks to determine whether certain senior officers and executives at PICO Holdings awarded salaries, bonuses, stock options and other forms of long-term, incentive or retirement compensation that were excessive or unwarranted based on the PICO Holdings 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 PICO Holdings (PICO) stockholders to more efficiently influence or control future compensation decisions at PICO Holdings Inc.