Company: AWK
Filing Date: 2025-03-27
Form Type: DEF 14A
Source: 0001193125-25-064607
Chunk: 44

Company: American Water Works Company, Inc.
Filing Date: 2025-03-27
Form: DEF 14A
Chunk 44
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 Severance Policy and Change of Control Severance Policy. Finally, we offer limited and customary perquisites, primarily consisting of executive physicals, Company-paid life insurance benefits, and, as applicable, relocation benefits.

| AMERICAN WATER | 2025 PROXY STATEMENT |     | 29 |

Our allocation of compensation among these elements is designed to align our levels of compensation with market pay, which we define as being within a competitive range of the median of our peer group and benchmarking data for a NEO’s position. For 2024, our compensation program for all of our NEOs consisted of the following key elements: The following graphs depict 2024 total direct compensation mix for our CEO and, on an average basis, for all of our other NEOs as a group, assuming annual and long-term incentive awards are paid at target levels:

| 30 |     | AMERICAN WATER | 2025 PROXY STATEMENT |

Summary of Executive Compensation Practices Below we summarize key components of our NEO compensation programs, which we consider best practices that align the interests of our executive team with those of our shareholders:

| We do:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |     | We do not:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| ·   Tie a considerable portion of executive pay to company performance   ·   Weight equity compensation heavily towards performance stock units   ·   Utilize an independent compensation consultant   ·   Require executives to abide by stock ownership guidelines and stock retention requirements   ·   Subject all incentive-based compensation to clawback provisions   ·   Complete an annual compensation program risk assessment, overseen by the ED&CC   ·   Utilize double-trigger vesting of equity awards upon a change of control   ·   Provide reasonable and customary severance arrangements to NEOs |     | ·   Provide excise tax gross-ups in our change of control arrangements   ·   Provide employment agreements to our NEOs, other than customary employment offer letters   ·   Allow hedging, pledging or short selling of our common stock by employees or directors   ·   Allow buying of our common stock on margin by employees or directors   ·   Provide excessive perquisites for executives   ·   Distribute dividend equivalents on