8-KLeadership ChangesExhibits & Filings

American Water Works Company, Inc. 8-K Report, Executive Changes (Feb 18, 2021)

Filed February 18, 2021For Securities:AWK

Summary

American Water Works Company, Inc. (AWK) has announced a significant leadership transition with the appointment of Cheryl Norton as Executive Vice President and Chief Operating Officer, effective March 1, 2021. Ms. Norton brings extensive experience, having served the company for over 30 years in various operational and leadership roles, most recently as Senior Vice President and Chief Environmental Officer. This promotion reflects her deep understanding of the company's operations and is accompanied by a competitive compensation package designed to align with her new responsibilities. The filing also details compensation adjustments for CEO Walter J. Lynch and the appointment of Bruce A. Hauk as Deputy Chief Operating Officer, indicating a strategic strengthening of the company's executive team.

Key Highlights

  • 1Cheryl Norton appointed Executive Vice President and Chief Operating Officer (effective March 1, 2021).
  • 2Ms. Norton has over 30 years of experience within American Water Works.
  • 3Her compensation package includes an annual base salary of $500,000, a target annual performance plan (APP) award of 75% of base salary, and long-term performance plan (LTPP) equity awards of approximately 150% of base salary.
  • 4Walter J. Lynch, President and CEO, received an increase in his annual base salary to $1,000,000, with target APP awards at 110% of base salary and LTPP equity awards at approximately 400% of base salary.
  • 5Bruce A. Hauk appointed Deputy Chief Operating Officer (effective March 1, 2020).
  • 6The Board of Directors and its compensation committee approved these executive changes and compensation adjustments.

Frequently Asked Questions

Cheryl Norton's appointment as Executive Vice President and Chief Operating Officer is significant as it places an executive with extensive, long-standing experience within American Water Works into a critical operational leadership role. Her 30+ years of service suggest a deep institutional knowledge that can drive operational efficiency and strategic execution for the company.

Walter J. Lynch, the President and CEO, has received an increase in his compensation, effective February 16, 2021. His annual base salary has risen to $1,000,000, with his target annual performance plan (APP) award opportunity increasing to 110% of his base salary, and his 2021 long-term performance plan (LTPP) equity target awards set at approximately 400% of his base salary.

Yes, Bruce A. Hauk, who was previously President of Regulated Operations and Military Services Group, has been appointed as Deputy Chief Operating Officer, effective March 1, 2020. This appointment, alongside Ms. Norton's promotion, indicates a strengthening of the company's senior operational leadership team.

Effective March 1, 2021, Ms. Norton's compensation package includes an annual base salary of $500,000. She is also eligible for an Annual Performance Plan (APP) cash award opportunity of 75% of her base salary at target, and Long-Term Performance Plan (LTPP) equity target awards valued at approximately 150% of her base salary. She will also continue to participate in the company's Executive Severance Policy and other standard senior executive benefits.