8-KLeadership ChangesExhibits & Filings

American Water Works Company, Inc. 8-K Report, Executive Changes (Feb 2, 2022)

Filed February 2, 2022For Securities:AWK

Summary

American Water Works Company, Inc. (AWK) announced significant leadership changes via an 8-K filing on February 2, 2022. Walter J. Lynch, the President and CEO, is retiring from his roles and the Board of Directors, effective February 2, 2022. His departure is amicable and not due to any disagreements. The company has entered into a separation agreement with Mr. Lynch, which includes a 12-month non-compete and non-solicitation period, in exchange for 12 months of his base salary. Concurrently, M. Susan Hardwick has been appointed as the new President and Chief Executive Officer, also effective February 2, 2022. Ms. Hardwick will continue as Chief Financial Officer until a replacement is found and has also been elected to the Board of Directors to fill the vacancy left by Mr. Lynch. These leadership transitions are key events for investors to monitor as they will shape the company's strategic direction and operational execution moving forward.

Key Highlights

  • 1CEO Walter J. Lynch is retiring from his position as President and CEO, and also stepping down from the Board of Directors, effective February 2, 2022.
  • 2Mr. Lynch's retirement is not due to any disagreements with the company regarding operations, policies, or practices.
  • 3A separation agreement with Mr. Lynch includes a 12-month non-compete and non-solicitation period in exchange for 12 months of his base salary.
  • 4M. Susan Hardwick has been appointed as the new President and Chief Executive Officer, effective February 2, 2022.
  • 5Ms. Hardwick will continue to serve as CFO until her successor is named.
  • 6Ms. Hardwick has been elected to the Board of Directors to fill the vacancy created by Mr. Lynch's retirement.
  • 7Lloyd M. Yates is retiring from the Board of Directors effective February 14, 2022, to become President and CEO of NiSource Inc.

Frequently Asked Questions

The company announced the retirement of its President and CEO, Walter J. Lynch, effective February 2, 2022. M. Susan Hardwick has been appointed as the new President and CEO, and also elected to the Board of Directors. Additionally, board member Lloyd M. Yates is retiring from the board.

Mr. Lynch will receive 12 months of his current annual base salary ($1,000,000) as part of a separation agreement. This is in exchange for a 12-month concurrent non-compete and non-solicitation period, a general release of claims, and other restrictive covenants.

Ms. Hardwick's compensation includes an annual base salary of $1,000,000, a 2022 target award under the Annual Performance Plan of 110% of her base salary, and eligibility for long-term performance plan awards with a target of 400% of her base salary. She will also continue to participate in executive severance and deferred compensation plans. She also received a $100,000 cash stipend for her prior interim CEO service.

Yes, Ms. Hardwick will continue in her role as Chief Financial Officer and principal financial officer until her replacement is named.