8-KLeadership Changes

American Water Works Company, Inc. 8-K Report, Executive Changes (Feb 26, 2013)

Filed February 26, 2013For Securities:AWK

Summary

American Water Works Company, Inc. (AWK) announced a significant leadership transition in its finance department via an 8-K filing dated February 26, 2013, with the earliest event reported on February 20, 2013. The primary focus of this filing is the appointment of Susan N. Story as the new Senior Vice President and Chief Financial Officer, effective April 1, 2013. Ms. Story brings extensive experience from Southern Company, a major utility provider, where she held leadership roles including President and CEO of Southern Company Services and Gulf Power Company. Her compensation package includes a base salary of $535,000, with target incentives and a substantial equity award, reflecting her senior position. This leadership change also marks the departure of Ellen C. Wolf from her role as CFO on April 1, 2013, though she will remain with the company to ensure a smooth handover. Additionally, Mark Chesla will assume the duties of the principal accounting officer on the same date. Investors should monitor the integration of Ms. Story into AWK's financial leadership, as well as the strategic implications of this executive change on the company's financial operations and future performance.

Key Highlights

  • 1Susan N. Story appointed as Senior Vice President and Chief Financial Officer (CFO), effective April 1, 2013.
  • 2Ms. Story has over 30 years of experience in the utility sector, most recently as President and CEO of Southern Company Services.
  • 3Ms. Story's compensation package includes a base salary of $535,000, a target Annual Incentive Plan (AIP) payout of 75% of base salary, and a Long-Term Incentive Plan (LTIP) target payout of 150% of base salary.
  • 4Ms. Story will receive 37,500 restricted stock units (RSUs) vesting over 24 months as a replacement for forfeited benefits.
  • 5Ellen C. Wolf will cease serving as CFO on April 1, 2013, and will continue with the company to facilitate a transition.
  • 6Mark Chesla will assume the duties of the principal accounting officer on April 1, 2013.
  • 7The filing details executive severance provisions for Ms. Story in case of termination without cause, including salary continuation and benefits for 12 months.

Frequently Asked Questions

Susan N. Story has been appointed as the new Senior Vice President and Chief Financial Officer. Her appointment is effective April 1, 2013.

Ms. Story has over 30 years of experience in the utility industry. She most recently served as President and CEO of Southern Company Services and previously as President and CEO of Gulf Power Company, both subsidiaries of Southern Company.

Ms. Story will receive an annual base salary of $535,000. Her target incentive payouts include 75% of her base salary under the Annual Incentive Plan (AIP) and 150% of her base salary under the Long-Term Incentive Plan (LTIP). She will also receive 37,500 restricted stock units (RSUs) that vest over 24 months.

Ellen C. Wolf will cease to serve as Senior Vice President and Chief Financial Officer on April 1, 2013. She will remain employed by the company to assist with the transition to Ms. Story.