DEF: American Water Announces Executive Transition and Director Nominees Ahead of 2025 Annual Meeting

American Water's upcoming annual meeting will feature an executive transition with John C. Griffith succeeding M. Susan Hardwick as CEO, and the election of eight director nominees.

Summary

• American Water's 2025 Annual Meeting of Shareholders will be held virtually on May 14, 2025.
• M. Susan Hardwick will retire as CEO immediately following the annual meeting, with John C. Griffith succeeding her.
• The company solicits continual feedback from its shareholders as part of its ongoing investor relations and shareholder outreach programs.
• Eight director nominees are proposed for election, each to serve until the 2026 Annual Meeting.
• Shareholders will vote on the election of directors, approval of executive compensation, and ratification of the appointment of PricewaterhouseCoopers LLP as the independent registered public accounting firm for 2025.
• The company plans to invest more than $3.3 billion in 2025 to replace infrastructure and support system resiliency.
• American Water aims for a 7 to 9 percent long-term earnings per share (EPS) compounded annual growth rate.
• The company has had 16 consecutive years of dividend increases, with a compounded annual growth rate of 8.9 percent over the last five years.
• American Water targets a 2 percent compounded annual growth rate in acquired customers.

Sentiment

Score: 8

Explanation: The document presents a positive outlook with a focus on growth, executive transition, and commitment to sustainability and corporate governance. The tone is professional and confident, reflecting a well-managed company.

Positives

• John C. Griffith's appointment as CEO reflects the Board's commitment to executive succession planning.
• The company's strategy focuses on operational, capital, and regulatory execution.
• American Water is committed to providing superior customer experience and supporting customer affordability.
• The company has a strong track record of earnings and dividend growth.
• American Water has been recognized for its sustainability efforts and commitment to employees, customers, communities, and shareholders.

Risks

• A substantial portion of the company's operations are subject to regulation by public utility commissions.
• The company's capital execution requires extensive attention to planning, risk management, and environmental compliance.
• The company's success depends on constructive regulatory environments that support long-term service reliability and customer affordability.

Future Outlook

American Water aims for a 7 to 9 percent long-term earnings per share (EPS) compounded annual growth rate and targets a 2 percent compounded annual growth rate in acquired customers.

Management Comments

• Karl F. Kurz, Board Chair: 'The Board of Directors believes John to be an exceptional choice as CEO, and he and the management team have the full confidence of the Board.'
• Karl F. Kurz, Board Chair: 'On behalf of the American Water Board of Directors, I would like to take this opportunity to thank M. Susan Hardwick for her leadership as Chief Executive Officer of American Water since 2022.'

Industry Context

The document highlights American Water's position as the largest and most geographically diverse, publicly traded water and wastewater utility company in the United States, emphasizing its leadership in addressing water and wastewater challenges.

Comparison to Industry Standards

• The document mentions American Water's inclusion on Barron's 100 Most Sustainable U.S. Companies 2024 List and Newsweek's America's Most Responsible Companies 2025 List, indicating a commitment to sustainability that aligns with industry benchmarks.
• The company's governance and disclosure efforts regarding political contributions are recognized by the Center for Political Accountability's CPA-Zicklin Index, placing it in the second quartile among S&P 500 companies.

Management Changes

Corporate Governance

Stakeholder Impact

• Customers will benefit from the company's commitment to superior customer experience and affordability.
• Employees will benefit from the company's focus on safety, development, and a positive work environment.
• Investors will benefit from the company's compelling growth opportunity and commitment to shareholder value.
• Communities will benefit from the company's partnership in seeking water and wastewater solutions.
• Regulators and policymakers will benefit from the company's focus on constructive regulatory environments.

Next Steps

• Shareholders are encouraged to vote their shares in advance of the meeting.
• The Board will fill the vacancy in the role of Chair of the Nominating Committee in due course.
• The Board will reset the size of the Board to eight immediately following the 2025 annual meeting, assuming the election of all eight director nominees.

Key Dates

Keywords

Annual Meeting, Executive Transition, Director Nominees, Corporate Governance, Shareholder Value, Infrastructure Investment, Water Utility, American Water