8-KLeadership ChangesOther EventsExhibits & Filings

American Water Works Company, Inc. 8-K Report, Executive Changes (Aug 1, 2008)

Filed August 1, 2008For Securities:AWK

Summary

This 8-K filing from American Water Works Company, Inc., dated August 1, 2008, reports on significant organizational changes aimed at streamlining operations and enhancing strategic growth. The company announced the creation of a new executive officer position, President of American Water Services, filled by John S. Young. This role consolidates leadership over operating support functions and will collaborate with business development on expansion initiatives, while the Chief Operating Officer position is retired. Additionally, the filing announces the appointment of Walter J. Lynch as President of Regulated Operations, overseeing the company's regulated utility businesses and customer service centers. The company also appointed Julia L. Johnson as an independent director, effective August 1, 2008, who will serve on the Nominating/Corporate Governance Committee and receive compensation structured with retainers, meeting fees, and a mix of restricted stock units and stock options. These appointments reflect a strategic restructuring to better manage diverse business segments and pursue growth opportunities.

Key Highlights

  • 1Creation of a new executive officer role: President of American Water Services, filled by John S. Young, to lead operating support functions and drive growth initiatives.
  • 2Retirement of the Chief Operating Officer position.
  • 3Appointment of Walter J. Lynch as President of Regulated Operations, enhancing oversight of core utility businesses.
  • 4Appointment of Julia L. Johnson as an independent director, effective August 1, 2008.
  • 5Ms. Johnson will serve on the Nominating/Corporate Governance Committee.
  • 6Ms. Johnson's compensation includes an annual retainer, meeting fees, and equity awards (restricted stock units and stock options).

Frequently Asked Questions

The creation of this role and the appointment of John S. Young suggest a strategic focus on centralizing and strengthening operating support functions across the company's regulated and non-regulated businesses. This position is also designed to work closely with business development, indicating a push for expansion and large-scale growth opportunities.

The retirement of the COO position, coupled with the creation of the President of American Water Services role, implies a restructuring of executive leadership. The responsibilities previously held by the COO may have been absorbed or redefined within the new leadership structure, potentially leading to a more specialized operational oversight.

This appointment signifies a dedicated focus on the core regulated utility operations. Mr. Lynch's responsibility for operational oversight of these businesses and customer call centers aims to improve efficiency and service within the company's essential utility segments.

Ms. Johnson's appointment involves compensation for her board service, including an annual retainer and fees for attending meetings. She will also receive equity compensation in the form of restricted stock units and stock options, aligning her interests with those of shareholders and incentivizing long-term company performance.