Company: AWK
Filing Date: 2025-03-27
Form Type: DEF 14A
Source: 0001193125-25-064607
Chunk: 39

Company: American Water Works Company, Inc.
Filing Date: 2025-03-27
Form: DEF 14A
Chunk 39
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             | 200,000 |
| Audit, Finance and Risk Committee Chair               |     | $             | 145,000 |
| ED&CC, Nominating Committee and SETO Committee Chairs |     | $             | 140,000 |
| Other Non-Employee Directors                          |     | $             | 120,000 |

We do not pay our directors a separate fee for attendance at Board or committee meetings. For calendar year 2024, Aon Human Capital Solutions, or Aon, the ED&CC’s independent compensation consultant, reviewed American Water’s non-employeedirector pay program for market competitiveness. The review determined that the cash and equity compensation paid to our non-employeedirectors and our Board Chair were positioned at the median of our 2024 peer group (as defined below in “Compensation Discussion and Analysis—Compensation Determinations and Pay Competitiveness in 2024” beginning on page 33 of this proxy statement), and that our Board Chair’s total compensation was positioned at the 75th percentile for non-executivechairpersons among the companies in our 2024 peer group with a non-executivechairperson. As a result of the review, and based on, among other things, data and analyses provided by Aon, the ED&CC recommended, and the independent members of the Board approved, an increase in the annual director base equity grant from $155,000 to $165,000, which brought the directors’ total direct compensation to just below the 75th percentile of the compensation peer group. This compensation decision was effective as of May 15, 2024. No changes were made to the cash retainer or to the premiums paid to our non-executiveBoard Chair or the committee chairs. Equity compensation for our non-employeedirectors is paid in the form of stock units under our 2017 Omnibus Plan. The actual number of stock units granted is based on the closing price of our common stock on the date of grant, which is typically the date the director is elected or re-electedto the Board. The stock units vest on the date of grant and the shares underlying the stock units are distributed to the directors as soon as administratively practicable after the date of grant. Previously, the distribution of shares of common stock underlying the stock units granted to non-employeedirectors was deferred until approximately 15 months after the date of grant; the ED&CC discontinued this practice beginning with the 2024 annual equity grants. Non-