Company: AWK
Filing Date: 2025-12-17
Form Type: S-4
Source: 0001193125-25-321389
Chunk: 167

Company: American Water Works Company, Inc.
Filing Date: 2025-12-17
Form: S-4
Chunk 167
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278 and $15,000, respectively. Nonqualified Retirement Plans Prior to the effective time, Essential is permitted to terminate its Supplemental Pension Benefit Plan for Salaried Employees, effective as of the closing of the merger, and, to the extent any such plan has not been liquidated prior to the closing, American Water will cause all benefits under such plans to be paid as soon as reasonably practicable following the closing. The following executive officers participate in the Supplemental Pension Benefit Plan for Salaried Employees: Messrs. Franklin and Luning. The estimated aggregate amount of all benefits under such plans that will be accelerated in connection with the merger is $20,000,000, approximately $17,000,000 of which relates to benefits payable to Messrs. Franklin (approximately $13,800,000) and Luning (approximately $3,300,000) pursuant to the terms of their respective change in control arrangements, and approximately $2,900,000 of which relates to benefits that would become payable to other plan participants in connection with a plan termination. Retiree Medical Plan Prior to the effective time, Essential may adopt an amendment to its post-employment welfare benefit arrangements to provide that they may not be terminated by Essential or a successor for up to three years following the effective time. As of the date of this joint proxy statement/prospectus, the only Essential executive officers eligible to participate in Essential’s retiree medical plan are Messrs. Franklin and Luning, and the estimated value of their benefits is approximately $261,000 and $189,000, respectively. 108

New Management Arrangements

American Water will enter into a letter agreement with each of Mr. Schuller and Ms. Arnold, to be effective as of the effective time, pursuant to
which (i) during a two-year employment period in new roles with American Water (Executive Vice President and Chief Strategy Officer and President, Regulated Operations, respectively) following the
effective time, each such executive may terminate their employment for good reason (as defined in their change in control agreements) and receive the severance benefits provided for therein and (ii) their outstanding equity awards will be
converted into American Water equity awards and the vesting of such awards will accelerate in full as of the effective time. As of the date of this joint proxy statement/prospectus, no such letter agreements have been entered into with either
Mr. Schuller or Ms. Arnold.

In addition, American Water will enter into an employment agreement with