American Water Works Company, Inc. - Form 8-K Summary
Business Context and Reporting Period
This Current Report on Form 8-K, dated July 30, 2024, reports executive leadership changes and associated compensatory arrangements for American Water Works Company, Inc. The changes are effective as of August 1, 2024, reflecting ongoing executive development and succession planning.
Key Financial Metrics
The filing does not provide revenue, profit, cash flow, margin, debt, or liquidity metrics. It focuses exclusively on executive compensation adjustments.
Material Changes
The Board of Directors elected and designated the following leadership changes effective August 1, 2024:
- John C. Griffith: Promoted from Executive Vice President and Chief Financial Officer to President. He will lead day-to-day operations and report to the CEO.
- David Bowler: Promoted from Senior Vice President, Deputy Chief Financial Officer, and Treasurer to Executive Vice President and Chief Financial Officer (Principal Financial Officer).
- M. Susan Hardwick: Title changes from President and Chief Executive Officer to Chief Executive Officer. She remains the Principal Executive Officer and a Board member.
- Cheryl Norton: Remains Executive Vice President and Chief Operating Officer but will additionally oversee the business development function.
Compensation and Management Commentary
The Executive Development and Compensation Committee approved updated 2024 compensation packages for the affected executives to reflect their new roles and responsibilities. The updates include base salaries, annual performance plan (APP) targets, long-term performance plan (LTPP) targets, and additional LTPP grants.
| Executive | 2024 Base Salary | APP Target % | LTPP Target % | Additional LTPP Grant Value |
|---|---|---|---|---|
| John C. Griffith | $950,000 | 100% | 340% | $530,734 |
| David Bowler | $550,000 | 80% | 160% | $195,719 |
| Cheryl Norton | $710,000 | 90% | 245% | $146,260 |
These updates were benchmarked against independent consultant data. All executives remain eligible for standard severance policies and deferred compensation plans.
Investor Verification Checklist
- Confirm the effective date of the leadership transition (August 1, 2024).
- Verify the specific reporting lines, particularly Mr. Griffith reporting to Ms. Hardwick.
- Review the total value of the additional long-term incentive grants approved for the fiscal year.
- Check for any future filings regarding the formal employment offer letters approved by the Board.