Company: AWK
Filing Date: 2025-03-27
Form Type: DEF 14A
Source: 0001193125-25-064607
Chunk: 38

Company: American Water Works Company, Inc.
Filing Date: 2025-03-27
Form: DEF 14A
Chunk 38
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 unit, division or function; and any other officer who performs similar policy-making functions for American Water. The term also includes any other person who performs similar policy-making functions for American Water. An officer of a subsidiary of American Water would be deemed to be an “executive officer” for purposes of this standard if the officer performs such policy-making functions for American Water. |

DIRECTOR EVALUATIONS AND ASSESSMENTS Each year, directors complete a series of evaluations to assess the performance of the Board and each of the standing committees. The evaluations elicit responses in key areas of Board operation and function and subjective comments from each director. Each committee member evaluates how well the committees on which the member serves are functioning and provides suggestions for improvement. Since 2017, the Board utilized a peer review process by which each director was asked to provide feedback on a number of characteristics of each of the other directors, including background, leadership, preparation, focus on shareholder interests, participation and independence. In addition, annually, members of our executive leadership team, comprised of senior executives of the Company who regularly interact with the Board and the committees, are solicited to provide their input and perspective on the operation of the Board and how the Board might improve its effectiveness.

| 24 |     | AMERICAN WATER | 2025 PROXY STATEMENT |

Finally, our Board Chair also interviews each director individually to obtain their assessment of director performance, Board dynamics and the effectiveness of the Board and its committees, and to discuss the results of the peer review process and their responses to these questions. A summary of the responses to the questionnaires and the responses received from senior management’s feedback is reviewed by the Board Chair. The summary and related responses with respect to the Board and each committee is ultimately discussed in executive session in meetings of the Board and each respective committee. DIRECTOR COMPENSATION As described in the table below, during 2024, our non-employeedirectors received annual cash retainers, paid in quarterly installments, for their service on the Board. Additionally, each non-employeedirector received an annual equity grant of approximately $165,000 ($260,000 for the Board Chair). Our Chief Executive Officer did not receive any additional compensation for serving as a director. Our non-employeedirector cash compensation as of the date of this proxy statement is as follows:

| Director                                              |     | Annual        
 Cash Retainer |         |
|:------------------------------------------------------|:----|:--------------|--------:|
| Board Chair                                           |     | $