Company: AWK
Filing Date: 2025-12-17
Form Type: S-4
Source: 0001193125-25-321389
Chunk: 44

Company: American Water Works Company, Inc.
Filing Date: 2025-12-17
Form: S-4
Chunk 44
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 willingness to serve. Additionally, it is expected that each of the executive officers of American Water immediately prior to the effective time will, after
the effective time, continue to serve in the same or similar positions until the earlier of such individual’s resignation or removal. See “The Merger—Governance of American Water After the Merger” beginning on
page 103.

None of American Water’s directors or executive officers are party to or participates in any plan, program, or arrangement that
provides such director or executive officer with any compensation that is based on or otherwise related to the completion of the merger.

Interests of the Essential Directors and Executive Officers in the Merger

In considering the recommendation of the Essential board to approve the merger
agreement and the transactions contemplated thereby, including the merger, Essential shareholders should be aware that Essential’s directors and executive officers have interests in the merger that may be different from, or in addition to, the
interests of Essential shareholders generally, including treatment of outstanding Essential equity awards in connection with

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the transactions contemplated by the merger agreement, potential severance benefits, and rights to ongoing indemnification and insurance coverage. The Essential board was aware of these interests and considered them, among other matters, in evaluating and negotiating the merger agreement and in reaching its decision to (i) determine that it is advisable, fair to, and in the best interests of Essential and its shareholders to enter into the merger agreement and to consummate the transactions contemplated by the merger agreement, including the merger, (ii) approve, adopt, and declare advisable the merger agreement, and (iii) direct that the merger agreement proposal, the merger-related compensation proposal, and the Essential adjournment proposal be submitted to the Essential shareholders for approval at the Essential special meeting. These interests are discussed in more detail in “ The Merger—Interests of Directors and Executive Officers in the Merger—Interests of Essential Directors and Executive Officers in the Merger” beginning on page 105. Accounting Treatment The merger, if it occurs, will be accounted for as a purchase of Essential by American Water under the acquisition method of accounting in accordance with GAAP. For more information regarding the accounting treatment, see “ The Merger—Accounting Treatment of the Merger” beginning on page 112. No Appraisal or Dissenters’ Rights in the Merger Under Delaware law, American Water shareholders will not be entitled to any appraisal or dissenters’ rights in connection with the merger or any other transactions described in this joint proxy statement