Company: AWK
Filing Date: 2025-03-27
Form Type: DEF 14A
Source: 0001193125-25-064607
Chunk: 54

Company: American Water Works Company, Inc.
Filing Date: 2025-03-27
Form: DEF 14A
Chunk 54
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2023 adjusted EPS. The ROE measure is based on the three-year average from January 1, 2024, through December 31, 2026, using a five-quarter average shareholders’ equity for each year. Compounded EPS growth and ROE are key performance measures that link achievement of our financial and strategic goals to the creation of long-term shareholder value. The payout curves for each of these performance measures were approved in December 2023 and were reflective of the relevant period of our long-term, five-year financial plan that was reviewed and approved by the Board. Earnings impacts from our February 2024 amendment of the HOS seller note in excess of $0.02 (for EPS), or 0.05 percent (for ROE) will be excluded in accordance with the ED&CC’s adopted guidelines.

| 38 |     | AMERICAN WATER | 2025 PROXY STATEMENT |

We do not grant, and since 2017 have not granted, options as part of the LTPP. For this reason, the Company has not adopted a policy or practice on the timingof awards of options in relation to the disclosure of material nonpublic information. Performance Vesting of PSUs Granted in 2022 In 2022, we granted two equally weighted types of PSUs to all of our NEOs: one with a three-year performance measure based on TSR relative to companies in our 2022 peer group, and the other with a three-year performance measure based on the annual rate of our compounded adjusted EPS growth. The payouts of the two types of PSUs are summarized in the table below:

| Performance Measure                 |     | Threshold   
 Performance 
 (Weighting) |     | Target      
 Performance 
 (Weighting) |     | Maximum     
 Performance 
 (Weighting) |     | Actual      
 Performance |     | Percentage ofTarget 
 Award Earned        |
| Relative Total Shareholder Return   |     | -25%        |     | -100%       |     | -200%       |     | 9th         
 percentile  |     | 0.00%               |
| Compounded Adjusted EPS Growth Rate |     | -0%         |     | -100%       |     | -200%       |     | 7.77% (1)   |     | 192.33%             |

| (1) | See Part B of Appendix A for a calculation of actual performance for this 2022 PSU award. |

Actual performance is