CAMDEN, NJ – American Water (NYSE:AWK) Works Company, Inc. (NYSE:AWK) has disclosed executive leadership changes in a recent SEC filing. Effective August 1, 2024, John C. Griffith, 58, previously Executive Vice President and Chief Financial Officer, will take on the role of President. David Bowler, 46, the company's Senior Vice President, Deputy Chief Financial Officer, and Treasurer, will step up as the new Executive Vice President and Chief Financial Officer, also serving as the principal financial officer.
The company's current President and Chief Executive Officer, M. Susan Hardwick, will continue as CEO and a member of the Board but will relinquish the title of President. Griffith will report to Hardwick and lead the day-to-day operations, while Cheryl Norton remains as Executive Vice President and Chief Operating Officer, with added oversight of business development starting August 1.
The Executive Development and Compensation Committee approved updated compensation for Griffith, Bowler, and Norton, reflecting their new roles and responsibilities. Griffith's annual base salary has been set at $950,000 with a target award percentage of 100% for the annual performance plan (APP) and 340% for the long-term performance plan (LTPP). Bowler's salary will be $550,000, with an 80% APP target and a 160% LTPP target. Norton's updated salary is $710,000, with a 90% APP target and a 245% LTPP target. Additionally, the executives received prorated LTPP awards to align with their new compensation structure.
InvestingPro Insights
As American Water Works Company, Inc. (NYSE:AWK) navigates through its executive leadership transition, it's worth noting the company's financial health and market performance to understand the backdrop against which these changes are occurring. According to real-time data from InvestingPro, American Water Works has a solid market capitalization of $27.75 billion, reflecting its significant presence in the industry. The company's P/E ratio stands at 29.09, which is high compared to its near-term earnings growth, suggesting that investors are expecting higher earnings in the future or are willing to pay a premium for the company's quality and stability.
InvestingPro Tips highlight a strong history of dividend payments, with the company raising its dividend for 10 consecutive years and maintaining payments for 17 consecutive years. This track record is a testament to American Water Works' commitment to shareholder returns. Additionally, the company is trading near its 52-week high and has shown a strong return over the last three months, with an 18.12% 3-month price total return. These metrics indicate a positive sentiment in the market towards the company's stock.
It's also important to note that the company is profitable, as analysts predict it will be profitable this year and it has been profitable over the last twelve months. With a revenue growth of 10.78% over the last twelve months as of Q1 2024, American Water Works is demonstrating its ability to expand its financial base in a challenging economic environment.
For investors seeking more in-depth analysis and additional insights, there are 11 more InvestingPro Tips available, which can be found at https://www.investing.com/pro/AWK. These tips can provide further guidance on the company's financials and market position, helping investors make more informed decisions.
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