California Water Service Group · NYSE:CWT
California Water Service — Shareholder Meeting (May 2023)
16 slides from California Water Service's shareholder meeting presentation, May 9, 2023
Slide 1: Steady at the Helm: 2023 Stockholder Outreach
STEADY AT THE HELM California Water Service Group 2023 Stockholder Outreach
Slide 2: 2022 Performance Highlights
2022 Performance Highlights GROUP OPERATIONS • Continued enhancement of the Group’s safety organization and programs, making safety a top priority • Closed acquisitions in Hawaii, New Mexico, Texas, and Washington, adding approximately 4,000 customers • Completed purchase agreements with three utili
Slide 3: 2022 Performance Highlights, cont.
2022 Performance Highlights, cont. EMPLOYEE RETENTION & DEVELOPMENT • Supported the growth of our employees by defining career maps, offering educational resources, and connecting program members with a trained mentor through our new Operations Leadership Program • Provided unconscious bias training
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 President and CEO of California Water
Slide 5: Independent Directors with Optimal Mix of Skills and Experience
Independent Directors with Optimal Mix of Skills and Experience GENDER DIVERSITY 4 out of 9 director nominees are gender diverse RACIAL/ETHNIC DIVERSITY 1 out of 9 director nominees are ethnically diverse DIVERSITY OF AGE 11% Ages 50 - 59 67% Ages 60 - 69 22% Ages 70 - 75 67% 67% 56% 22% 67% 100% 56
Slide 6: Governance Practices Promote Long-Term Focus and Strengthen Accountability
Governance Practices Promote Long - Term Focus and Strengthen Accountability EFFECTIVE BOARD LEADERSHIP & INDEPENDENT OVERSIGHT • Independent Lead Director with well - defined responsibilities • Substantial majority of independent directors and all - independent committees • Executive sessions led b
Slide 7: Environmental, Social, and Governance Highlights
Environmental, Social, and Governance HIGHLIGHTS Annual framework - aligned reporting on material ESG topics* * 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 long - term at -
Slide 8: Management of Cybersecurity Risk
Management of Cybersecurity Risk 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 Adopted and followi
Slide 9: Total Compensation Philosophy for Executives
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’ compensation
Slide 10: Performance-Driven Executive Compensation
Performance - Driven Executive Compensation PERFORMANCE - BASED ARP COMPENSATION → Designed to align annual performance and achievement with long - term strategic goals of Group → Fully at risk with payout, dependent upon achievement of certain performance objectives over one - year performance peri
Slide 11: Commitment to Stockholder Engagement & Responsiveness to Feedback
Commitment to Stockholder Engagement & Responsiveness to Feedback 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/Corpo
Slide 12: Overview of Stockholder Proposal No. 6: Emissions Reduction Targets & Reporting
Overview of Stockholder Proposal No. 6: Additional Emissions Reduction Targets & Reporting Why We Recommend You Vote AGAINST the Proposal » Group is aligned with the proposal’s overall goal : W e agree with the overarching goal of the proposal – that it is important to mitigate climate risk – and be
Slide 13: Additional Details on Why We Recommend Vote Against Proposal No. 6
Additional Details on Why We Recommend You Vote AGAINST Stockholder Proposal No. 6 We already report our GHG emissions and are focused on continued improvement • We partnered with an independent consultant to prepare an updated GHG inventory of 2021 and 2022 Scope 1, 2, and partial Scope 3 emissions
Slide 14: Additional Details on Why We Recommend Vote Against Proposal No. 6, cont.
Additional Details on Why We Recommend You Vote AGAINST Stockholder Proposal No. 6, cont. The proposal exposes us to unnecessary risk without meaningfully addressing climate change given the nature of our business • With the completion of our partial Scope 3 emissions inventory, we found that indire
Slide 15: We ask for your vote at our 2023 Annual Meeting
We ask for your vote at our 2023 Annual Meeting Our Board values your support for its recommendations on the following proposals: PROPOSAL 1 “ FOR ” the election of 9 directors PROPOSAL 2 “ FOR ” the advisory vote on executive compensation PROPOSAL 3 “ ONE YEAR ” on the advisory vote on the frequenc
Slide 16: 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 2022 ESG Report and ESG Analyst Download ( collectively the “ESG Disclosures”), contain forward - looking statements within the meaning established by the Private Securiti
California Water Service Group — Shareholder Meeting (May 2023) on 6ix