California Water Service Group · NYSE:CWT
California Water Service — Shareholder Meeting (May 2024)
19 slides from California Water Service's shareholder meeting presentation, May 1, 2024
Slide 1: California Water Service Group 2024 Stockholder Outreach
California Water Service Group 2024 Stockholder Outreach
Slide 2: 2023 Performance Highlights
GROUP OPERATIONS • Added more than 1,600 new customers in c losed acquisitions in California, Washington and New Mexico. • Added 1,770 equivalent dwelling units of wastewater customers through the acquisitions of HOH Utilities, LLC on the island of Kauai • Ranked highest in overall customer satisfac
Slide 3: 2023 Performance Highlights, cont.
REGULATORY • Secured $4.3 million in grants to reduce rate impacts of critical water supply projects in disadvantaged communities • Assisted customers in receiving more than $2 million from the state and federal Low - Income Household Water Assistance Program (LIHWAP) • Applied for and subsequently
Slide 4: Highly Qualified, Diverse Director Nominees
Highly Qualified, Diverse Director Nominees 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 Chairman, President and CEO of Califor
Slide 5: 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 6: Effective Board Leadership & Independent Oversight
EFFECTIVE BOARD LEADERSHIP & INDEPENDENT OVERSIGHT • Independent Lead Director designated by the independent directors with defined responsibilities • Regular scheduled executive sessions led by Independent Lead Director at Board meetings • Regular scheduled executive sessions at committee meetings
Slide 7: ESG Program Highlights and 2023 Progress
Annual framework - aligned reporting on ESG topics most material to the business* * Full ESG reports and data downloads may be accessed at https://www.calwatergroup.com/esg/reports - documents . ESG PROGRAM HIGHLIGHTS ESG - related metrics integrated into performance - based at - risk compensation p
Slide 8: Cybersecurity Collaboration, Compliance and Governance
COLLABORATION Partnering with: • Cybersecurity & Infrastructure Security Agency (CISA) • DHS • FBI • USEPA • Fusion Centers • WaterISAC • Various state Office of Emergency Services for information sharing and incident response support COMPLIANCE Approach informed by following cyber frameworks: • Nat
Slide 9: Governance and Executive Compensation Changes
Governance and executive compensation changes include: GOVERNANCE • Formed Enterprise Risk Management, Safety, and Security Committee • Environmental, social, and governance (ESG) matters are overseen by Nominating/Corporate Governance Committee • Adopted four new policies: Environmental Sustainabil
Slide 10: Executive Compensation Goal and Factors
GOAL: Providing compensation that attracts, retains, and motivates talented officers We believe a balance of fixed and variable compensation components, with short - term and long - term compensation elements, maintains a strong link between NEOs’ compensation and Group’s overall performance while p
Slide 11: Performance-Driven Executive Compensation
PAY ELEMENT PERFORMANCE PERIOD PERFORMANCE CHARACTERISTICS Base Salary Annual Individualized based upon performance of primary roles and responsibilities Performance - Based Short - Term At - Risk (ARP) Compensation Annual Five performance metrics • Water quality and public health – 20% • Customer s
Slide 12: Short-Term At-Risk Compensation Design
• Designed to align annual performance, achievement, and team accountability with long - term strategic goals of the Group • Performance metrics focus on achieving annual financial, operational, and safety goals, all of which are tied to advancing the Company’s values, key initiatives, and long - te
Slide 13: ARP Compensation (Operational Metrics): Water Quality and Public Health
ARP Compensation (Operational Metrics) 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 we operate in. This performance standard is set to meet and exceed all primary and
Slide 14: ARP Compensation (Operational Metrics): Customer Service and Support
ARP Compensation (Operational Metrics) CUSTOMER SERVICE AND SUPPORT Group’s customer service metrics are designed to meet and exceed all customer service requirements set by the Public Utilities Commission. The board reviews and set annual targets designed to ensure high levels of service and minimi
Slide 15: Long-Term Performance and Time-Based Equity Compensation
Long - Term Performance and Time - Based Equity Compensation • Designed to align executive compensation with interests of both stockholders and customers • Creates incentives for officer recruiting and retention • Encourages long - term performance by NEOs without encouraging imprudent risk - taking
Slide 16: Overview of Proposal No. 4: 2024 Equity Incentive Plan
Overview of Proposal No. 4: Approval of Group’s 2024 Equity Incentive Plan Key Features of the 2024 Plan The following is a summary of the principal terms of the 2024 Plan, as proposed. Because this is a summary, it may not contain all the information that may be considered important. Therefore, the
Slide 17: We ask for your vote at our 2024 Annual Meeting
We ask for your vote at our 2024 Annual Meeting Our Board values your support for its recommendations on the following proposals: PROPOSAL 1 “ FOR ” the election of 11 directors PROPOSAL 2 “ FOR ” the advisory vote on executive compensation PROPOSAL 3 “ FOR ” the ratification of independent accounta
Slide 18: Forward-Looking Statements and Other Important Information
Forward - Looking Statements and Other Important Information This presentation and the materials referred to herein, such as the 2023 ESG Report and ESG Analyst Download (collectively th e “ ESG Disclosures”), contain forward - looking statements within the meaning established by the Private Securit
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