8-KLeadership Changes

American Water Works Company, Inc. 8-K Report, Executive Changes (Feb 28, 2025)

Filed February 28, 2025For Securities:AWK

Summary

American Water Works Company, Inc. (AWK) announced in an 8-K filing on February 28, 2025, that it has entered into a Severance Agreement with Executive Vice President and Chief Human Resources Officer, Melanie M. Kennedy. The agreement details the terms of Ms. Kennedy's separation from the company, effective March 1, 2025. For investors, this filing primarily concerns executive compensation and transition matters. The severance package includes a cash payment equivalent to 12 months of Ms. Kennedy's base salary, a prorated 2025 performance award, and extended healthcare continuation coverage. The company is also providing a supplemental cash payment of $300,000. In return, Ms. Kennedy has agreed to standard restrictive covenants, including non-solicitation and non-disparagement clauses. This information is important for understanding executive compensation practices and potential changes in key personnel within the company's leadership.

Key Highlights

  • 1Melanie M. Kennedy, EVP and Chief Human Resources Officer, is departing the company, with an effective separation date of March 1, 2025.
  • 2Ms. Kennedy will receive severance equivalent to 12 months of her $487,953 annual base salary.
  • 3A prorated 2025 award opportunity under the Annual Performance Plan, equal to 65% of her base salary, will also be provided.
  • 4The company will extend COBRA healthcare continuation coverage for up to 16 weeks, with an additional eight months of company-paid coverage.
  • 5A supplemental cash payment of $300,000 will be made to Ms. Kennedy.
  • 6Ms. Kennedy has agreed to non-solicitation, non-disparagement, and confidentiality covenants.
  • 7The severance agreement is subject to applicable legal review and rescission periods.

Frequently Asked Questions

This 8-K filing primarily concerns the departure of Melanie M. Kennedy, Executive Vice President and Chief Human Resources Officer, and the details of her severance agreement with the company.

The direct financial impact includes the cash severance payment (12 months of base salary), the prorated 2025 performance award, and a $300,000 supplemental cash payment. Extended healthcare coverage also represents a cost to the company.

Yes, Ms. Kennedy has agreed to standard restrictive covenants, including non-solicitation, non-disparagement, and confidentiality obligations in favor of American Water Works Company, Inc.

Ms. Kennedy's separation is effective March 1, 2025. She will receive her eligible benefits under the company's Executive Severance Policy, including 12 months of base salary, a prorated 2025 performance award, and extended COBRA healthcare coverage, plus a supplemental $300,000 cash payment.