Company: AWK
Filing Date: 2025-03-27
Form Type: DEF 14A
Source: 0001193125-25-064607
Chunk: 51

Company: American Water Works Company, Inc.
Filing Date: 2025-03-27
Form: DEF 14A
Chunk 51
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Based upon our performance with regard to the financial and non-financialperformance measures, the ED&CC certified an APP payout of 157.32 percent. Cash awards under the APP are generally paid to participants by March 15 of the year following the performance year. 2024 Long-Term Performance Plan The LTPP is designed to incentivize eligible participants to achieve our long-term business objectives by providing an opportunity to earn equity awards tied to our long-term goals and continued employment with the Company. For 2024, the ED&CC approved including an ROE performance measure in the LTPP. ROE is a key performance measure that aligns our interests with those of our shareholders by measuring our ability to efficiently generate profits relative to shareholders’ equity. The 2024 LTPP awards are weighted 30 percent to time-based RSUs and 70 percent to PSUs, with the PSU component consisting of three performance measures: compounded EPS growth weighted at 35 percent of the total LTPP award, TSR relative to the companies in the 2024 peer group weighted at 20 percent of the total LTPP award, and ROE weighted at 15 percent of the total LTPP award. Generally, our RSU awards vest ratably over an approximate three-year period while a participant remains employed with us. PSU awards generally are earned ratably over a three-year performance period while employed, and the vesting of each PSU award is determined by the ED&CC following the end of the

three-year performance period based on the satisfaction of pre-determinedperformance goals. To the extent an RSU award is unvested or a PSU award has not been earned, it is generally forfeited once a participant ceases to be employed with us or if the performance goals are not achieved; however, LTPP awards to certain NEOs may continue to vest after an early or normal retirement. See “—Ongoing and Post-Employment Arrangements and Benefit Plans—Terms of Outstanding Equity Grants” beginning on page 43 of this proxy statement for additional details. The ED&CC has adopted guidelines to permit management to make adjustments for purposes of LTPP performance achievement based on EPS and ROE, to the extent greater than $0.02 per share for EPS, or 0.05 percent for ROE. The ED&CC retains authority to approve other adjustments not covered by this authorization. We based the aggregate target value of LTPP awards on a percentage of