8-KLeadership Changes

American Water Works Company, Inc. 8-K Report, Executive Changes (Jul 31, 2024)

Filed July 31, 2024For Securities:AWK

Summary

American Water Works Company, Inc. (AWK) has announced significant executive leadership changes, effective August 1, 2024. The most notable transition is the appointment of John C. Griffith, previously EVP and CFO, to the role of President. David Bowler, formerly Senior VP, Deputy CFO, and Treasurer, will step into the position of EVP and CFO, also serving as the principal financial officer. M. Susan Hardwick will continue as CEO, with her title adjusting to solely Chief Executive Officer. These changes are presented as part of ongoing executive development and succession planning. In conjunction with these appointments, the company has also updated the compensation packages for Messrs. Griffith and Bowler, as well as Cheryl Norton (EVP and COO) who will be taking on additional business development responsibilities. These adjustments include increases in base salary, annual performance plan targets, and long-term performance plan awards, reflecting the new scopes of their roles. The compensation decisions were guided by benchmarking data and advised by an independent consultant.

Key Highlights

  • 1Effective August 1, 2024, John C. Griffith is appointed President, moving from his previous role as EVP and CFO.
  • 2David Bowler is appointed EVP and CFO, and principal financial officer, transitioning from Senior VP, Deputy CFO, and Treasurer.
  • 3M. Susan Hardwick will continue as CEO, with her title changing from President and CEO to solely Chief Executive Officer.
  • 4Cheryl Norton, EVP and COO, will assume oversight of the business development function.
  • 5Executive compensation has been adjusted for Messrs. Griffith and Bowler to reflect their new roles, and for Ms. Norton due to added responsibilities.
  • 6New 2024 annual base salaries, APP target award percentages, and LTPP target award percentages have been approved for the key executives.
  • 7Additional grants of 2024 LTPP awards were issued to Messrs. Griffith and Bowler, and Ms. Norton, with updated fair values reflecting the changes.

Frequently Asked Questions

Effective August 1, 2024, John C. Griffith has been appointed President, and David Bowler has been appointed Executive Vice President and Chief Financial Officer. M. Susan Hardwick will continue as Chief Executive Officer, and Cheryl Norton will remain Executive Vice President and Chief Operating Officer, also taking on business development responsibilities.

The company states these changes are a reflection of ongoing executive development and succession planning activities undertaken by the Board of Directors and management.

In connection with their new roles and responsibilities, the compensation for John C. Griffith, David Bowler, and Cheryl Norton has been updated. This includes adjustments to their 2024 annual base salaries, 2024 Annual Performance Plan (APP) target award percentages, and 2024 Long-Term Performance Plan (LTPP) target award percentages. Additional LTPP awards were also granted.

As of August 1, 2024, John C. Griffith's new base salary is $950,000 with a 100% APP target and 340% LTPP target. David Bowler's new base salary is $550,000 with an 80% APP target and 160% LTPP target. Cheryl Norton's new base salary is $710,000 with a 90% APP target and 245% LTPP target. These figures are prorated as of August 1, 2024.