California Water Service Group · NYSE:CWT
California Water Service — Shareholder Meeting (April 2022)
16 slides from California Water Service's shareholder meeting presentation, Apr 15, 2022
Slide 1: 2022 Stockholder Update May 2022
2022 Stockholder Update May 2022
Slide 2: CWT 20-Year Total Return
CWT 20 - Year Total Return 2 CWT: +921% S&P: +513% (on $100 stock purchase on Dec. 31, 2001, with dividends reinvested) 0 200 400 600 800 1000 1200 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 JAN 2021 DEC 2021 S&P 500 CWT
Slide 3: 2021 Performance Highlights
3 2021 Performance Highlights GROUP OPERATIONS • Achieved record net income • Continued enhancement of Group’s safety organization and programs • Activated Drought Response Taskforce, initiated Drought Response Plans, and mobilized to accelerate critical water supply projects • Hawaii Water s igned
Slide 4: Water Quality & Customer Service; Employee Retention & Development
4 WATER QUALITY & CUSTOMER SERVICE • Met all state and federal primary and secondary water quality standards in all water systems operated by Group • Met requirements of America’s Water Infrastructure Act (AWIA) of 2018 • Maintained excellent environmental standards record • Surpassed nine Californi
Slide 5: Highly Qualified, Diverse Board of Directors Provides Strong Oversight
5 Highly Qualified, Diverse Board of Directors Provides Strong Oversight GREGORY E. ALIFF Former Vice Chairman and Senior Partner of U.S. Energy & Resources, Deloitte LLP TERRY P. BAYER Former Chief Operating Officer, Molina Healthcare Inc. SHELLY M. ESQUE Former Vice President and Global Director o
Slide 6: Independent Directors with Optimal Mix of Skills and Experience
6 Independent Directors with Optimal Mix of Skills and Experience Exceptional Community Support GENDER DIVERSITY 5 out of 12 directors are gender diverse RACIAL/ETHNIC DIVERSITY 1 out of 12 directors are ethnically diverse DIVERSITY OF AGE 17% Ages 50 - 59 50% Ages 60 - 69 33% Ages 70 - 75
Slide 7: Effective Board Leadership & Independent Oversight
7 Effective Board Leadership & Independent Oversight • Substantial majority of independent directors and all - independent committees • Executive sessions led by independent Lead Director at Board meetings • Ongoing review of Board composition and succession planning • Focus on diversity , experienc
Slide 8: Environmental, Social, and Governance Highlights
8 Environmental, Social, and Governance HIGHLIGHTS Published first framework - aligned ESG Report * • Aligned with SASB • Guided by TCFD • In reference to Global Reporting Initiate (GRI) standards Adopted four new ESG - related policies • Human rights • Environmental sustainability • Political invol
Slide 9: Management of Cybersecurity Risk
9 The cybersecurity landscape for critical infrastructure operators, including the water and wastewater sector, continues to evolve. The Group recognizes this and has continued to invest in our cyber infrastructure. Management of Cybersecurity Risk COLLABORATION Partnering with: • Cybersecurity & In
Slide 10: Total Compensation Philosophy for Executives
10 Total Compensation Philosophy for Executives Goal: Providing compensation that attracts, retains, and motivates talented officers We believe a balance of fixed and variable compensation components, with short - and long - term compensation elements , maintains a strong link between NEOs ’ compens
Slide 11: Performance-Driven Executive Compensation
11 Performance - Driven Executive Compensation Pay Element Performance Period Performance Metric Base salary Annual - Performance - based short - term incentive (STI) compensation Annual • Water quality – 20% • Customer service – 20% • Utility plant investment – 20% • Earnings per share – 20% • Emer
Slide 12: 2021 Base Salaries
2021 Base Salaries 12 There were no increases to NEO base salary in 2021. Additionally, all executives elected to take a temporary voluntary reduction in base salary, averaging 10%, contributing the value of the reductions to the Cal Water Hardship Fund to assist the customers and communities we ser
Slide 13: 2022 Base Salaries
2022 Base Salaries 13 For 2022, executive base salaries were increased to reflect cost - of - living increases, performance, and changes to market conditions. This increase was the first cost - of - living adjustment since January 1, 2020. 2022 Salary Increase Name 2021 Base Salary Before Temporary
Slide 14: Commitment to Stockholder Engagement & Responsiveness to Feedback
Commitment to Stockholder Engagement & Responsiveness to Feedback 14 Recent governance and executive compensation changes include: Governance • Formed Enterprise Risk Management, Safety, and Security Committee • Included oversight of environmental , social, and governance (ESG) items by Nominating/C
Slide 15: Our Board values your support for its recommendations
15 Our Board values your support for its recommendations on the following proposals: We ask for your vote at our 2022 Annual Meeting “ FOR ” the election of 12 directors “ FOR ” the advisory vote on executive compensation “ FOR ” the ratification of independent accountants “ FOR ” the approval of am
Slide 16: Forward-looking statements
16 This presentation contains forward - looking statements within the meaning established by the Private Securities Litigation Reform Act of 1995 ("Act"). The forward - looking statements are intended to qualify under provisions of the federal securities laws for "safe harbor" treatme nt established
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