California Water Service Group Updates Executive Compensation

TL;DR

**CA Water Service Group just updated exec pay, watch for impact on costs and leadership.**

AI Summary

California Water Service Group filed an 8-K on January 4, 2024, reporting events from January 3, 2024, related to changes in its executive compensation arrangements. This filing indicates that the company is updating how it compensates certain officers, which could impact its operational costs and executive retention strategies. For investors, this matters because changes in executive compensation can influence management's incentives and the company's overall financial health, potentially affecting future stock performance.

Why It Matters

Changes in executive compensation can affect a company's financial performance and its ability to attract and retain top talent, directly influencing shareholder value.

Risk Assessment

Risk Level: low — This filing primarily concerns routine updates to executive compensation arrangements, which typically carry a low direct risk to the company's immediate operations or financial stability.

Analyst Insight

A smart investor would monitor future filings for details on the specific changes to compensatory arrangements to assess their potential impact on the company's financial outlook and executive retention.

Key Players & Entities

• CALIFORNIA WATER SERVICE GROUP (company) — Registrant
• January 3, 2024 (date) — Date of earliest event reported
• January 4, 2024 (date) — Filed as of date
• Delaware (company) — State of incorporation for CALIFORNIA WATER SERVICE GROUP
• 1720 North First Street San Jose, California 95112 (company) — Address of principal executive offices for CALIFORNIA WATER SERVICE GROUP

Forward-Looking Statements

• CALIFORNIA WATER SERVICE GROUP will likely see minor adjustments in its operational expenses due to the updated compensatory arrangements for certain officers. (CALIFORNIA WATER SERVICE GROUP) — medium confidence, target: 2024-12-31

FAQ

Key Financial Figures

• $0.01 — h registered Common Shares, par value $0.01 CWT New York Stock Exchange Indic
• $470,000 — er, he will receive an annual salary of $470,000 and will be eligible to participate in

Filing Documents

• tm241860d1_8k.htm (8-K) — 27KB
• tm241860d1_ex99-1.htm (EX-99.1) — 8KB
• tm241860d1_ex99-1img001.jpg (GRAPHIC) — 51KB
• 0001104659-24-001170.txt ( ) — 276KB
• cwt-20240103.xsd (EX-101.SCH) — 3KB
• cwt-20240103_lab.xml (EX-101.LAB) — 33KB
• cwt-20240103_pre.xml (EX-101.PRE) — 22KB
• tm241860d1_8k_htm.xml (XML) — 3KB

02

Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers. On January 3, 2024, the Board of Directors of California Water Service Group (the "Company") appointed James P. Lynch to serve as Senior Vice President, Chief Financial Officer and Treasurer. Mr. Lynch will join the Company on or about January 3, 2024 and will formally assume the duties of the Company's principal financial officer immediately following the filing of the Company's Annual Report on Form 10-K for the year ended December 31, 2023. David B. Healey, the Company's Interim Vice President, Chief Financial Officer and Treasurer, will remain the principal financial officer until the filing of the Company's Annual Report on Form 10-K for the year ended December 31, 2023. Mr. Lynch, age 64, joined the Company as Manager of Special Projects in January 2023. Previously, Mr. Lynch served in senior executive finance roles for SJW Group, a provider of regulated and nonregulated water services, including Chief Accounting Officer from January 2022 to March 2023 and Chief Financial Officer and Treasurer from October 2010 to January 2022. Before joining SJW Group in 2010, Mr. Lynch served in a variety of roles, most recently as Audit Partner, for KPMG LLP from September 1984 to September 2010. Mr. Lynch, a Certified Public Accountant, holds a Bachelor of Science Degree in Commerce with a major in Accounting from Santa Clara University. In connection with Mr. Lynch's appointment as Senior Vice President, Chief Financial Officer and Treasurer, he will receive an annual salary of $470,000 and will be eligible to participate in the Company's executive compensation program on the same basis as our other Senior Vice Presidents, including the Company's short-term and long-term incentive programs, Executive Severance Plan and Supplemental Executive Retirement Plan, as generally described in the "Compensation Discussion

01

Item 7.01. Regulation FD Disclosure. On January 4, 2024, the Company issued a press release announcing the appointment of Mr. Lynch. A copy of the press release is attached hereto as Exhibit 99.1.

Financial Statements and Exhibits

Financial Statements and Exhibits We hereby furnish the following exhibits, which shall not be deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934 (the "Exchange Act") with this report: Exhibit No. Description 99.1 Press Release issued January 4, 2024 104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. CALIFORNIA WATER SERVICE GROUP Date: January 4, 2024 By: /s/ Martin A. Kropelnicki Name: Martin A. Kropelnicki Title: Chairman, President & Chief Executive Officer

View Full Filing

View this 8-K filing on SEC EDGAR