Company: AWK
Filing Date: 2025-03-27
Form Type: DEF 14A
Source: 0001193125-25-064607
Chunk: 55

Company: American Water Works Company, Inc.
Filing Date: 2025-03-27
Form: DEF 14A
Chunk 55
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 based on the rate of EPS growth, compounded annually over the three-year period from January 1, 2022, through December 31, 2024, over our 2021 EPS. The ED&CC certified the achievement of the requisite PSU performance measures in February 2025. Limited Perquisites and Other Benefits We provide limited perquisites to our NEOs, consisting principally of reimbursement for executive physicals, Company-paid life insurance benefits, and, where applicable, relocation assistance. We believe that providing executives with limited perquisites supports our emphasis on performance-based pay, while providing NEOs with a benefit package that is competitive and supports executive retention. The incremental costs of certain of these perquisites for 2024 are described in footnote (5)to the Summary Compensation table on page 47 of this proxy statement.

| AMERICAN WATER |2025 PROXY STATEMENT |     | 39 |

EXECUTIVE STOCK OWNERSHIP GUIDELINES AND STOCK RETENTION REQUIREMENTS The Board has adopted, as updated in February 2025, executive stock ownership guidelines and complementary stock retention requirements that further emphasize the importance of linking the financial interests of our executives with those of our shareholders. The stock ownership guidelines are expressed as a multiple of the executive’s annual base salary. Executives (directly or through immediate family members or controlled entities) are expected to hold a specified amount of common stock (including certain equivalents) based on the executive’s position, as follows:

| Officer Level                                                                         |     | Multiple of Annual Base Salary |
| Chief Executive Officer or President                                                  |     | 6 times                        |
| Executive Vice Presidents                                                             |     | 3 times                        |
| Senior Vice Presidents, Senior Leadership Team members, and other Section 16 officers |     | 2 times                        |
| Utility State Presidents and Line of Business Presidents                              |     | 1 time                         |

For purposes of the executive stock ownership guidelines, shares of common stock, shares underlying vested and unvested RSUs and shares underlying vested PSUs count toward satisfying the ownership guidelines. Shares underlying vested or unvested stock options and unvested PSUs do not count. Under our executive stock ownership guidelines, to sell or transfer shares of common stock, and subject to certain exceptions, each executive must be in compliance with the stock ownership guidelines at the time of the sale or transfer. Sales or transfers will be permitted to the extent they do not cause the executive’s total ownership to fall below the required threshold. Each executive at the Executive Vice President level and higher who