California Water Service Group · NYSE:CWT
California Water Service — Shareholder Meeting (May 2025)
18 slides from California Water Service's shareholder meeting presentation, May 1, 2025
Slide 1: California Water Service Group 2025 Annual Meeting Stockholder Outreach
California Water Service Group 2025 Annual Meeting Stockholder Outreach
Slide 2: 2024 Performance Highlights
2 Note: Due to delayed 2021 California General Rate Case decision, 2024 revenue and net income included interim rate relief totaling $87.5M and $64.0M, respectively, attributable to 2023. 2024 Performance Highlights Capital Investment $471M Operating Revenue $1,037 M Dividend Increase 7.7% Net Incom
Slide 3: Relative Total Shareholder Return Performance
Water utilities had a challenging year in 2024. Our Total Shareholder Return (TSR) does not fully reflect our record financial performance in 2024. The water utility industry as a whole experienced TSR underperformance. Companies like us that exclusively provide water utility services experienced wo
Slide 4: 2024 Awards and Recognitions
4 • Named one of “America’s Most Responsible Companies” by Newsweek for a Fourth Consecutive Year • Named one of “World’s Most Trustworthy Companies” by Newsweek magazine in 2024 for a Second Consecutive Year • Earned the U.S. Environmental Protection Agency’s 2024 WaterSense Excellence in Promoting
Slide 5: Highly Qualified Nominees with Diverse Perspectives, Experience, and Backgrounds
Highly Qualified Nominees with Diverse Perspectives, Experience, and Backgrounds GREGORY E. ALIFF Former Vice Chairman and Senior Partner of U.S. Energy & Resources, Deloitte LLP SHELLY M. ESQUE Former Vice President and Global Director of Corporate Affairs, Intel Corporation MARTIN A. KROPELNICKI C
Slide 6: Independent Directors with Optimal Mix of Skills and Experience
Independent Directors with Optimal Mix of Skills and Experience GENDER DIVERSITY 4 of 11 director nominees are gender diverse RACIAL/ETHNIC DIVERSITY 2 of 11 director nominees are ethnically diverse DIVERSITY OF AGE 9% Ages 50 - 59 64% Ages 60 - 69 27% Ages 70 - 75 INDEPENDENCE 10 of 11 director nom
Slide 7: Effective Board Leadership & Independent Oversight
• Independent Lead Director with significant utility and governance experience • Independent Lead Director with defined responsibilities selected by the independent directors • Presides at meetings of the Board in the absence of the Chairman • Presides over executive sessions of the independent dire
Slide 8: Governance Practices Promote Long-Term Focus & Strengthen Accountability
• Codes of Conduct for directors, officers, and employees • Annual committee assessments • Adopted clawback policy for incentive - based compensation aligned with NYSE requirements • Stock ownership guidelines for directors and executive officers • Prohibition on short sales, transactions in derivat
Slide 9: Sustainability Highlights
Sustainability Highlights ESG Program Highlights Annual framework - aligned reporting on sustainability topics most significant to the business* * Full Sustainability reports and data downloads may be accessed at https://www.calwatergroup.com . ESG - related metrics integrated into performance - bas
Slide 10: Compensation Program Changes
COMPENSATION • Continued emphasis on long - term performance - based equity awards • Modified the performance criteria used for long - term and short - term at - risk compensation programs • Increased threshold performance level to 50% for future performance - based short - term at - risk compensati
Slide 11: Total Compensation Philosophy for Executives
GOAL : Providing compensation that attracts, retains, and motivates talented officers for long - term results and outstanding service. We believe a balance of fixed and variable compensation components, with short - term and long - term compensation elements, maintains a strong link between NEOs’ co
Slide 12: Performance-Driven Executive Compensation
Performance - Driven Executive Compensation PERFORMANCE CHARACTERISTICS PERFORMANCE PERIOD PAY ELEMENT Individualized based upon performance of primary roles and responsibilities Annual Base Salary Five main performance areas: • Water quality and public health – 20% • Customer service and support –
Slide 13: ARP Compensation
ARP Compensation is designed to align short - term incentives with long - term strategic objectives that serve both customers and stockholders . Target levels are set at a level sufficiently rigorous such that achievement is a good indicator that the Company’s long - term trajectory will continue to
Slide 14: Water Quality and Public Health
WATER QUALITY AND PUBLIC HEALTH The Group’s operations are regulated by the US Environmental Protection Agency (EPA) and respective state health regulators in each of the states in which our utilities operate. This performance standard is set to meet and surpass all primary and secondary water quali
Slide 15: Customer Service and Support
CUSTOMER SERVICE AND SUPPORT Group’s customer service metrics are designed to meet and surpass all customer service requirements set by the California Public Utilities Commission. The board reviews and sets annual targets designed to incentivize high levels of service and minimize customer complaint
Slide 16: Long-Term Performance & Time-Based Equity Compensation
• Designed to align executive compensation with the interests of both stockholders and customers • Creates incentives for officer recruiting and retention • Encourages long - term performance by the executive team wit hout encouraging imprudent risk - taking • Promotes stock ownership • The Company’
Slide 17: Board Voting Recommendations
Our Board recommends voting: “ FOR ” the election of 11 directors PROPOSAL 1 “ FOR ” the advisory vote on executive compensation PROPOSAL 2 “ FOR ” the ratification of independent accountants PROPOSAL 3 17
Slide 18: Forward-Looking Statements & Other Important Information
This presentation and the materials referred to herein, such as the 2024 Sustainability Report and Sustainability Analyst Download (collectively the “Sustainability Disclosures”), contain forward - looking statements within the meaning established by the Private Securities Litigation Reform Act of 1
California Water Service Group — Shareholder Meeting (May 2025) on 6ix