Business Context and Reporting Period
This Form 8-K was filed by American Water Works Company, Inc. on November 11, 2014. The report discloses a material event regarding the departure of a senior executive and the associated compensatory arrangements.
Key Financial Metrics
The filing does not provide general financial metrics such as revenue, profit, cash flow, margins, debt, or liquidity. The only financial data disclosed relates to the specific severance and consulting agreement with the departing executive:
- Severance Payment: $612,250, payable over 12 months following termination.
- Consulting Payment: $318,125, payable over 6 months following termination.
- Health Insurance: Reimbursement of COBRA premiums over 18 months, net of employee contributions.
- Annual Incentive Plan: Payout based on target award amount and corporate multiplier.
Material Changes
The material change reported is the separation of Kellye L. Walker, Senior Vice President, General Counsel, and Secretary. Her employment is scheduled to terminate on January 6, 2015. This filing supersedes her current role with a transition to a consulting arrangement for six months post-termination.
Outlook, Risks, and Unusual Items
Management Commentary and Arrangements: The agreement includes a confidentiality covenant and a general release from Ms. Walker. Her equity awards and deferred compensation will be handled according to existing plan terms, which are unaffected by this agreement. There is no forward-looking guidance or discussion of operational risks in this specific filing.
Investor Verification Checklist
- Verify the exact termination date of January 6, 2015, for Kellye L. Walker.
- Confirm the total cash consideration of $930,375 ($612,250 severance + $318,125 consulting) and the payment schedule.
- Review the terms of the 2014 Annual Incentive Plan to understand the calculation of the final payout.
- Check for any subsequent filings regarding the appointment of a replacement General Counsel or Secretary.