Company: AWK
Filing Date: 2025-03-27
Form Type: DEF 14A
Source: 0001193125-25-064607
Chunk: 47

Company: American Water Works Company, Inc.
Filing Date: 2025-03-27
Form: DEF 14A
Chunk 47
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 action or change in our compensation program was needed. At our 2025 annual meeting, we will again hold our say-on-payvote. In making executive compensation decisions, the ED&CC will continue to consider the results of the say-on-payvote, as well as feedback obtained from our shareholders throughout the course of the year. Information regarding our shareholder outreach during 2024 can be found in “Board of Directors and Corporate Governance—Shareholder Outreach” on page 13 of this proxy statement.

| 32 |     | AMERICAN WATER | 2025 PROXY STATEMENT |

COMPENSATION DETERMINATIONS AND PAY COMPETITIVENESS IN 2024 During 2024, the ED&CC reviewed and approved the compensation paid to all of our NEOs and made recommendations to the independent members of the Board with respect to compensation paid to the CEO and the President, which the independent members of the Board approved. The CEO and the President did not participate in the ED&CC’s recommendations regarding their respective compensation and did not attend those portions of the ED&CC and Board meetings during which their respective compensation was deliberated and voted upon. The ED&CC considered the CEO’s and the President’s assessments of the performance of all of the other NEOs, as well as the CEO’s and the President’s compensation recommendations regarding each such NEO’s base salary and their APP and LTPP target award opportunities. The ED&CC, with the CEO’s and the President’s participation, discussed the performance of all NEOs other than the CEO and the President, and, after discussion and deliberation held in executive session, approved compensation determinations for such NEOs. The ED&CC engaged Aon Human Capital Solutions, or Aon, as the independent compensation consultant for 2024. Upon engagement, the ED&CC assessed the independence of Aon and concluded that Aon was independent as determined under SEC and NYSE rules. Through its review of relevant benchmarking data and executive compensation trends presented by its independent compensation consultant, the ED&CC is able to assess competitive market compensation practices. Two of the primary ways that the ED&CC evaluates and benchmarks our executive compensation arrangements and practices are to review them against market data in a Willis Towers Watson study comprised of 60 percent weighting on publicly traded utilities and 40 percent weighting on general industry companies, as well as to similar data on companies in our compensation peer group, as described below. The ED&CC believes that there is a strong likelihood that an executive officer’s skills will