Company: AWK
Filing Date: 2025-03-27
Form Type: DEF 14A
Source: 0001193125-25-064607
Chunk: 7

Company: American Water Works Company, Inc.
Filing Date: 2025-03-27
Form: DEF 14A
Chunk 7
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     | ·   Since 2017, executive equity compensation does not include stock options                                                                                                                |
| ·   Considerable portion of pay is variable, rather than fixed, and is earned solely based on performance without incentivizing excessive risk-taking                                 |     | ·   Perquisites and other personal benefits to NEOs are limited principally to executive physicals, Company-paid life insurance benefits and relocation benefits                            |
| ·   Formal CEO goal setting and performance assessment process utilized throughout each year                                                                                          |     | ·   Double-trigger change-in-control provision in the 2017 Omnibus Equity Compensation Plan, or the 2017 Omnibus Plan, complements existing provision in Change of Control Severance Policy |
| ·   Long-Term Performance Plan, or LTPP, is weighted significantly toward performance stock units                                                                                     |     | ·   The ED&CC was advised by an independent compensation consultant throughout 2024                                                                                                         |
| ·   Representative, relevant peer group is evaluated annually and used for performance and compensation benchmarking, as well as to compute relative total shareholder return, or TSR |     | ·   NEOs have reasonable severance arrangements without excise tax gross-ups in the context of a change of control                                                                          |
| ·   All NEO incentive-based compensation is subject to clawback provisions that exceed the requirements of applicable SEC and NYSE rules                                              |     | ·   Annual shareholder advisory vote held on executive compensation, and management has adopted shareholders’ last recommendation in 2023 to continue this practice                         |
| ·   Executive stock ownership guidelines and retention requirements support alignment with shareholders’ interests by requiring long-term retention of equity ownership               |     | ·   Our cash-based annual performance plan, or APP, includes metrics related to safety and environmental leadership, highlighting our commitment to sustainability principles               |

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