Business Context and Reporting Period
This Form 8-K filing by American Water Works Company, Inc. reports corporate governance events occurring on June 19, 2009. The report details the appointment of new directors to the Company's board.
Key Financial Metrics
The filing does not provide financial performance data such as revenue, profit, cash flow, margins, debt, or liquidity. The only financial figures disclosed relate to director compensation arrangements.
Material Changes
The primary material change is the expansion of the Board of Directors. On June 19, 2009, the board appointed Ms. Julie A. Dobson and Mr. Stephen P. Adik as directors. Their terms are set to expire at the 2010 annual meeting of stockholders.
Management Commentary and Compensation Details
Management outlined the compensatory arrangements for the newly appointed directors in accordance with current policies:
- Annual Retainer: $21,315 payable for the remainder of 2009.
- Meeting Fees: $2,000 for each board meeting attended and $1,000 for each interim telephonic board meeting attended.
- Equity Compensation: Annual equity compensation of $50,000 in the form of Stock Units, prorated for the balance of their terms.
- Expenses: Reimbursement for reasonable expenses.
Investor Verification Checklist
- Confirm the effective date of the new directors' terms (June 19, 2009).
- Verify the expiration date of the terms (2010 annual meeting of stockholders).
- Review the specific prorated calculation for the $50,000 equity compensation.
- Check subsequent filings for the total number of board seats and any changes to the overall board composition.