American Water Works Company, Inc. - Form 8-K Summary
Business Context and Reporting Period
This Current Report on Form 8-K was filed by American Water Works Company, Inc. on April 30, 2019. The filing addresses significant changes in executive leadership, specifically the departure of the Chief Financial Officer and the appointment of a successor.
Key Financial Metrics
The filing does not provide revenue, profit, cash flow, margin, debt, or liquidity metrics. This report focuses exclusively on personnel changes and associated compensation arrangements.
Material Changes
- Departure of CFO: Linda G. Sullivan, Executive Vice President and Chief Financial Officer, notified the Company of her retirement effective August 1, 2019.
- Transition Plan: Ms. Sullivan will serve as CFO until July 1, 2019, and then as Executive Vice President-Finance until her departure on August 1, 2019.
- Appointment of Successor: M. Susan Hardwick will join as Executive Vice President-Finance on June 3, 2019, and assume the role of Executive Vice President and Chief Financial Officer effective July 1, 2019.
- Background: Ms. Hardwick previously served as CFO of Vectren Corporation, which was sold to CenterPoint Energy, Inc. in February 2019.
Compensation and Outlook
Ms. Hardwick's compensation package includes:
- Annual compensation substantially consistent with the current CFO position.
- A pro-rated 2019 Annual Performance Plan award opportunity equal to 75% of her base salary (at target).
- Pro-rated 2019 Long-Term Performance Plan awards based on a target of 150% of her base salary, including post-retirement vesting provisions.
- A lump-sum cash payment of $120,000 (less withholdings) in lieu of relocation benefits.
- A sign-on bonus of $120,000 (less withholdings).
- Eligibility for the Executive Severance Policy and employee nonqualified deferred compensation plan.
The filing states there are no other arrangements or understandings regarding her selection and no material interests in transactions requiring reporting under Item 404(a) of Regulation S-K.
Investor Verification Checklist
- Verify the exact transition dates for Linda G. Sullivan and M. Susan Hardwick (July 1, 2019, for the CFO role).
- Review the press release filed as Exhibit 99.1 for additional details on the leadership change.
- Confirm Ms. Hardwick's prior experience at Vectren Corporation and her qualifications for the regulated utility sector.
- Note that no financial performance data is included in this specific filing; refer to the most recent 10-Q or 10-K for financial metrics.