Company: AWK
Filing Date: 2025-03-27
Form Type: DEF 14A
Source: 0001193125-25-064607
Chunk: 57

Company: American Water Works Company, Inc.
Filing Date: 2025-03-27
Form: DEF 14A
Chunk 57
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5 PROXY STATEMENT |

The above restrictions are intended to prohibit transactions by these covered persons in financial instruments involving our securities, including prepaid variable forward contracts, equity swaps, collars and exchange funds, as well as transactions that hedge or offset, or are designed to hedge or offset, any decrease in the market value of our equity and debt securities. Our insider trading policy also prohibits these covered persons from (i) pledging our securities to a lender as collateral for a loan, (ii) using them in a margin account as collateral for any obligation incurred in connection with a purchase of securities, or (iii) entering into any other similar transaction that has the effect of using our securities as collateral or security for a loan or any other obligation. In addition, the policy prohibits these covered persons from short-selling, which is the practice of selling securities that are not owned by the seller. This prohibition includes “short sales against the box,” where the seller actually owns the securities being sold but fails to deliver them to the purchaser within a specified time period after the sale. The insider trading policy requires directors and NEOs to obtain approval from senior executive management and the Company’s SEC Counsel prior to implementing or terminating any Rule 10b5-1trading plan, and to comply with the applicable requirements of Rule 10b5-1and the insider trading policy before doing so. A copy of our insider trading policy is filed as an exhibit to our 2024 Form 10-Kand included on our Investor Relations website at ir.amwater.com. ONGOING AND POST-EMPLOYMENT ARRANGEMENTS AND BENEFIT PLANS We have several agreements, plans and arrangements that enable our NEOs to accrue retirement benefits as they continue to work for us, provide severance benefits upon certain types of termination of employment, or provide other forms of deferred compensation. Not all of these plans apply to each NEO, as indicated in the discussion below. Our NEOs are not entitled to receive excise tax gross-uppayments under any of the plans discussed below. The Company believes that these programs are important recruitment and retention tools. American Water Savings Plan The Savings Plan for Employees of American Water Works Company, Inc. and its Designated Subsidiaries, or the Savings Plan, is a tax-qualified401(k) defined contribution plan available to employees of American Water, including our NEOs, and certain subsidiaries. Under the Savings Plan, employees may contribute, subject to limitations imposed by the Internal Revenue Code of 1986, as amended,