Company: AWK
Filing Date: 2025-03-27
Form Type: DEF 14A
Source: 0001193125-25-064607
Chunk: 83

Company: American Water Works Company, Inc.
Filing Date: 2025-03-27
Form: DEF 14A
Chunk 83
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as defined by SEC rule) in the table and graphs above reflects the occurrence of CEO transitions in 2020 and 2022, each of which resulted in the promotion of an existing member of the Company’s executive leadership team. The net income relationship graph above for 2021 also reflects (i) the gain on sale of the Company’s Homeowner Services Group of $491 million after-tax,(ii) the Company’s $45 million contribution to the American Water Charitable Foundation in 2021, and (iii) the revaluation of certain state net operating losses. CEO PAY RATIO

Pursuant to SEC rules, we are required to disclose in this proxy statement the ratio of the annual total compensation of our CEO to the annual total compensation of our “median employee” (excluding the CEO). The identification of this median employee and the calculation of our CEO to median employee pay ratio were made in a manner we believe to be consistent with Item 402(u) of Regulation S-K.In this regard:

| · |     | W-2 
 W-2 |

| · |     | We included 6,706 employees located in the United States as of December 31, 2024, which includes full-time, part-time, seasonal and temporary employees. We did not have any employees located outside of the United States as of December 31, 2024. |

| · |     | We did not include leased employees or independent contractors. |

| · |     | cost-of-living 
 W-2            |

After identifying the median employee, we calculated that employee’s annual total compensation using the same methodology that we use for all of our NEOs in the 2024 Summary Compensation Table. The annual total compensation for fiscal year 2024 for Ms. Hardwick, determined as described above, and for the median employee was $8,580,730 and $107,694, respectively. The resulting ratio of Ms. Hardwick’s pay to the pay of our median employee for fiscal year 2024 is 80 to 1. As contemplated by Item 402(u) of Regulation S-Kand related interpretations, we relied on methods and assumptions that we determined to be reasonable and appropriate for this calculation. Other public companies may use different methods and assumptions. It may therefore be difficult, for this and other reasons, to compare our reported ratio to those reported by other companies.

| AMERICAN WATER |2025 PROXY STATEMENT |     | 63 |

COMPENSATION COMMITTEE INTERLOCKS AND INSIDER