American Water Adopts Majority Vote Standard for Board
American Water Works Company, Inc. of Voorhees, N.J., said on Jan. 5 that its Board of Directors has adopted a majority voting standard for the election of directors, which will be used at the company's 2011 annual stockholder meeting.
In conjunction with this amendment of the bylaws, the company amended its corporate governance guidelines to require that a director offer to resign if the number of votes cast "against" his or her election exceed votes cast "for" the candidate in an uncontested election. Within 90 days from the date of the certification of the election results, the board will decide whether to accept any such resignation and publicly disclose its decision.
"American Water and its Board of Directors are committed to the highest standards regarding corporate governance," said George MacKenzie, chair of the Board of American Water. "The amendment increases the board's accountability and gives our stockholders a stronger voice in the company."
American Water's Board recently experienced changes related to the divestiture by RWE. The board consists of eight members, seven of whom are independent under applicable U.S. Securities and Exchange Commission rules and listing standards of the New York Stock Exchange.
Founded in 1886, American Water is the largest investor-owned U.S. water and wastewater utility company. The company employs nearly 7,000 professionals who provide drinking water, wastewater and other related services to approximately 15.6 million people in 32 states and Ontario, Canada.