Mueller Water Products CEO's Compensation Agreement Update

By Tamara Parker • Thursday, December 12 10:24 • Permanent Link

Mueller Water Products, Inc. has announced changes to the employment agreement of Marietta Edmunds Zakas, the Chief Executive Officer. Effective December 4, 2024, Zakas will continue in her role with certain amendments and additional provisions to her compensation and benefits.

Annual Base Salary: Zakas will continue to be eligible for an annual base salary of no less than $900,000, along with a target annual bonus of no less than 110% of the annual base salary and a target annual long-term incentive opportunity of no less than 333% of the annual base salary.
Amendments to Change-in-Control Severance Agreement: Section 2.3(c) of the CIC Agreement has been amended to replace "two (2)" with "three (3)" where it appears therein.
Amendment to Employment Agreement: Article I, Section 5(ii) of the Employment Agreement has been amended to replace "262.5%" with "300%".
Increased Benefit: Article I, Section 3(e) of the Employment Agreement has been amended to replace "$1,500" with "$2,000".
Additional Benefits: Zakas will be eligible for an annual reimbursement of up to $10,000 for financial planning services, as well as other perquisites and personal benefits that are no less favorable than those provided to the previous Chief Executive Officer.
Retirement Benefits: In the event of retirement, Zakas will be entitled to a bonus based on actual results for the year of retirement and the preceding year. Additionally, the company will provide continued medical, dental, and group life insurance coverage for specified periods.

The company will also be responsible for withholding applicable taxes and making payments directly to Zakas' advisors for legal fees and expenses. Furthermore, all severance payments or other benefits will be paid in compliance with Section 409A of the Code.

It's important to note that all terms and conditions of the Employment Agreement and CIC Agreement will remain in full force and effect, with this letter controlling in the event of any conflict. These amendments signal a significant change in Zakas' compensation and benefits as she continues her role as the Chief Executive Officer. Following these announcements, the company's shares moved -0.2%, and are now trading at a price of $24.71. For more information, read the company's full 8-K submission here.

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