Summary
This 8-K filing from American Water Works Company, Inc. (AWK) on November 19, 2008, primarily details amendments to its nonqualified savings and deferred compensation plans for both employees and non-employee directors. These amendments, approved on November 14, 2008, and effective January 1, 2009, are designed to allow participants to invest deferred amounts in notional Company common stock. This change provides employees and directors with an opportunity to align their deferred compensation with the company's stock performance. Furthermore, a key driver for these amendments is the company's need to comply with final regulations under Section 409A of the Internal Revenue Code, which governs deferred compensation plans. Investors should note that these changes primarily relate to the structure and compliance of compensation plans rather than immediate operational or financial performance updates. The full details of the amended plans are available as exhibits to this filing and were also incorporated by reference into an earlier S-1 filing.
Key Highlights
- 1American Water Works Company, Inc. (AWK) amended its nonqualified savings and deferred compensation plans for employees and non-employee directors.
- 2The amendments were approved by the board of directors on November 14, 2008, and become effective January 1, 2009.
- 3Key change allows participants to invest deferred amounts in notional Company common stock.
- 4The amendments ensure compliance with final regulations under Section 409A of the Internal Revenue Code, which governs deferred compensation.
- 5These plan updates do not represent a change in the company's financial performance or business operations, but rather a modification of executive and director compensation structures.
- 6Detailed information on the amended plans is available in the exhibits (99.1 and 99.2) to this 8-K filing.