8-KLeadership ChangesRegulation FDOther Events+1

American Water Works Company, Inc. 8-K Report, Executive Changes (Jul 25, 2019)

Filed July 25, 2019For Securities:AWK

Summary

American Water Works Company, Inc. (AWK) announced significant changes to its Board of Directors through an 8-K filing on July 25, 2019. The company increased the size of its Board from eight to eleven members and appointed three new independent directors: Kimberly J. Harris, Patricia L. Kampling, and Lloyd M. Yates. These appointments are intended to strengthen the Board's expertise and governance as the company continues its operations and strategic initiatives. The new directors will serve until the 2020 Annual Meeting of Shareholders, with their compensation structured to include both cash retainers and equity awards.

Key Highlights

  • 1American Water Works expanded its Board of Directors from eight to eleven members.
  • 2Three new independent directors have been appointed: Kimberly J. Harris, Patricia L. Kampling, and Lloyd M. Yates.
  • 3The new directors' terms will extend until the company's 2020 Annual Meeting of Shareholders.
  • 4Each new director will receive an annual cash retainer of $100,000, prorated for 2019.
  • 5Equity compensation will be granted in stock units, representing a prorated portion of $135,000 annually through the 2020 Annual Meeting.
  • 6The appointments are accompanied by adjustments to the composition of key Board committees, including Audit, Finance and Risk; Executive Development and Compensation; Nominating/Corporate Governance; and Safety, Environmental, Technology and Operations.

Frequently Asked Questions

The company increased the size of its Board of Directors from eight to eleven members to appoint new independent directors, likely to enhance expertise, diversity of thought, and governance oversight.

The three new independent directors appointed are Kimberly J. Harris, Patricia L. Kampling, and Lloyd M. Yates.

New directors will receive an annual cash retainer of $100,000, prorated for 2019. They will also receive stock units as equity compensation, representing a prorated portion of $135,000 annually, vesting within 30 days following the date specified in the grant document.

Yes, the Board approved changes to its standing committees, with the new directors being assigned to various committees. For instance, Patricia L. Kampling and Lloyd M. Yates have been added to the Audit, Finance and Risk Committee, while Kimberly J. Harris and Patricia L. Kampling have joined the Safety, Environmental, Technology and Operations Committee.