Company: AWK
Filing Date: 2025-03-27
Form Type: DEF 14A
Source: 0001193125-25-064607
Chunk: 48

Company: American Water Works Company, Inc.
Filing Date: 2025-03-27
Form: DEF 14A
Chunk 48
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 be transferable among these companies, and thus we would expect to compete with these companies and others for NEO talent. The ED&CC referred to all of this benchmarking data as part of its review of general compensation practices and trends of the utility industry and our compensation peer group. In September 2023, the composition of our compensation peer group was reviewed by the independent compensation consultant and was reassessed by the ED&CC as part of its annual review to consider structural and methodology changes, as well as corporate transactions or other events that may affect the comparability of one or more of the constituent companies. In reviewing the appropriateness of our peer group companies, the ED&CC considers factors that most reflect our primary business of owning water and wastewater utilities subject to economic regulation by state utility commissions or similar entities, including, in decreasing order of relevance, consolidated total assets, market capitalization and consolidated revenues of companies that primarily operate (greater than 75 percent of revenue) as a regulated utility. After consideration of these factors, only companies that primarily operate as a regulated utility were selected as peer companies. In connection with this review, the ED&CC approved the peer group for 2024 without any changes from the 2023 peer group. Throughout 2024, compensation benchmarking decisions and grants of PSU awards based upon relative TSR were made using the 2024 peer group set forth in the table below.

| 2024 American Water Works Company, Inc. Compensation Peer Group |     |                           |     |                                              |
| Alliant Energy Corporation                                      |     | Entergy Corporation       |     | OGE Energy Corp.                             |
| Ameren Corporation                                              |     | Essential Utilities, Inc. |     | Pinnacle West Capital Corporation            |
| Atmos Energy Corporation                                        |     | Evergy, Inc.              |     | PPL Corporation                              |
| CenterPoint Energy, Inc.                                        |     | Eversource Energy         |     | Public Service Enterprise Group Incorporated |
| CMS Energy Corporation                                          |     | NiSource Inc.             |     | WEC Energy Group, Inc.                       |

| AMERICAN WATER | 2025 PROXY STATEMENT |     | 33 |

2024 COMPENSATION Compensation Philosophy and Objectives

Our executive compensation program is designed to reward our NEOs for delivering results and building long-term sustainable value for our shareholders and customers. Our program’s structure aligns the interests of our shareholders, customers, and NEOs by correlating pay to our short- and long-term performance. We focused