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American Water Works Company, Inc. 8-K Report, Shareholder Vote Results (May 10, 2019)

Filed May 10, 2019For Securities:AWK

Summary

This 8-K filing from American Water Works Company, Inc. (AWK) reports on the outcomes of its 2019 Annual Meeting of Shareholders held on May 10, 2019. The meeting saw a strong turnout, with 89.5% of outstanding shares represented, indicating significant shareholder engagement. Key to investors, all eight director nominees were re-elected, and shareholders provided advisory approval for executive compensation, signaling confidence in the company's current leadership and pay practices. Furthermore, the company's choice of PricewaterhouseCoopers LLP as its independent registered public accounting firm for 2019 was ratified, assuring investors of continued independent oversight of financial reporting. However, two shareholder proposals concerning political contributions and lobbying expenditures did not receive majority approval, suggesting a divergence of opinion on these specific corporate governance matters between management and a portion of the shareholder base.

Key Highlights

  • 1All eight director nominees were re-elected to serve until the 2020 Annual Meeting of Shareholders.
  • 2Shareholders provided advisory approval for the compensation of the Company's named executive officers with a significant 'For' vote.
  • 3PricewaterhouseCoopers LLP was ratified as the Company's independent registered public accounting firm for 2019.
  • 4A substantial majority of outstanding shares (89.5%) were represented at the meeting, indicating strong shareholder participation.
  • 5Shareholder proposals regarding political contributions and lobbying expenditures were not approved.
  • 6Karl F. Kurz was re-appointed as Chairman of the Board.
  • 7New committee assignments for the Board of Directors were announced, effective May 10, 2019.

Frequently Asked Questions

The 2019 Annual Meeting resulted in the re-election of all eight director nominees, advisory approval of executive compensation, and ratification of PricewaterhouseCoopers LLP as the independent auditor. Additionally, shareholder proposals on political contributions and lobbying expenditures were not approved.

No, all eight incumbent directors were re-elected. Karl F. Kurz was appointed to continue as Chairman of the Board. The filing also outlines the members appointed to the Board's various committees for the upcoming year.

The advisory approval of executive compensation indicates that a majority of shareholders who voted on the matter are in favor of the current compensation practices for the company's named executive officers. This generally signals shareholder confidence in the company's remuneration strategy.

These proposals did not receive majority support from shareholders. The filing shows that 'Against' votes significantly outnumbered 'For' votes for both proposals, indicating that the majority of voting shareholders did not approve of the specific requests outlined in these proposals.