American Water Works Company, Inc. filed a Form 425 on October 27, 2026, disclosing an internal employee FAQ addressing compensation, benefits, organizational structure, and career questions related to its pending merger with Essential Utilities, Inc.

Key Highlights

  • Pay protection pledged: According to the filing, base salary or wage rate "will be no less than before the merger closes," and target annual cash incentive and long-term performance opportunities will be "no less favorable in the aggregate."
  • Health benefits unchanged through 2027: The filing states each company will keep its respective insurance partners through 2027.
  • Union contracts honored: The filing confirms that collective bargaining agreement terms and conditions will be honored for covered employees.
  • Day 1 role assignments complete: The filing states that "all future roles have been determined for Day 1," with most employees expected to have "little to no changes" on that date.
  • Employee Resource Groups to merge: The filing indicates Essential Utilities' resource groups are anticipated to merge with their counterparts at American Water after closing.
  • Open roles available now: Essential Utilities employees may apply for American Water positions prior to closing through American Water's careers page, according to the filing.

Merger Integration Details Shared with Essential Utilities Employees

The Form 425 filing, made by American Water Works Company, Inc. pursuant to Rule 425 under the Securities Act of 1933 and deemed filed pursuant to Rule 14a-6 under the Securities Exchange Act of 1934, covers an internal HR FAQ first made available to American Water employees via an intranet site on October 27, 2026. The subject company is Essential Utilities, Inc. (Commission File No.: 001-06659). The FAQ addresses questions spanning future organizational structure, compensation, benefits, union contracts, employee resource groups, and career development.

On compensation, the filing states that base salary or wage rates will be no less than pre-merger levels, and that target annual cash incentive opportunity and target long-term performance opportunity will be no less favorable in the aggregate. The filing notes that American Water and Essential Utilities compensation plans are being compared and benchmarked against market practices, with further detail to be provided as decisions are made. For health benefits, each company will retain its own insurance partners through 2027, with future benefit structures under review and to be communicated in due course.

Regarding organizational structure, the filing notes that not all Essential Utilities employees will transition into American Water's job architecture on Day 1, as the two companies currently use different job-title structures and naming conventions. Title alignment will occur over time, coordinated between managers and HR. The filing also describes an Employee Experience Guide being developed to help employees understand Day 1 expectations. The filing characterizes the combined entity as expected to become "one of the largest regulated utilities in the country," and states that the combination is anticipated to create "significant career opportunities" for employees. All forward-looking statements in the filing are the companies' own and are subject to the cautionary language included in the document.

What Was Disclosed

American Water Works filed an internal employee FAQ as a Form 425, disclosing merger-related commitments on pay, benefits, union contracts, job titles, and employee resource groups, as well as information on role assignments and career opportunities ahead of the closing of its merger with Essential Utilities.