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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): March 17, 2006
SOUTHWEST WATER COMPANY
(Exact Name of Registrant as Specified in its Charter)
DELAWARE 0-8176 95-1840947
(State or Other Jurisdiction of (Commission (IRS Employer
Incorporation or Organization) File Number) Identification Number)
ONE WILSHIRE BUILDING
624 SOUTH GRAND AVENUE, SUITE 2900
LOS ANGELES, CALIFORNIA 90017-3782
(Address of Principal Executive Offices, including zip code)
(213) 929-1800
(Registrant's telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act
(17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17
CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
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Item 1.01 Entry into a Material Definitive Agreement
On March 27, 2006, the Compensation and Organization Committee of Southwest
Water Company (the "Company") established financial goals and performance-based
measures for awards under the Company's 2006 bonus plan applicable to the
Company's executive officers. The maximum annual incentive payout amount is
based on a percentage of salary, ranging from a maximum of 100% of base salary
for the Chief Executive Officer and President and Chief Operating Officer, and
from 20% to 70% of base salary for the other executive positions. Specific
performance objectives vary by executive. Most executive officers have a portion
of their bonus opportunity tied to (i) earnings per share targets, (ii)
continuing operations profit before taxes targets and (iii) discretionary
individual performance objectives. The Chief Executive Officer's bonus
opportunity is based upon 100% discretionary individual performance objectives.
The President and Chief Operating Officer's bonus opportunity is based 25% upon
earnings per share targets, 25% upon continuing operations profit before taxes
targets, and 50% upon discretionary individual performance objectives.
Additional performance targets applying to certain of the other executive
officers include Utility Group profitability. For any executive, a bonus can be
paid for meeting one objective while another objective is not met, which would
be reflected in a lower total bonus amount.
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 hereto duly authorized.
SOUTHWEST WATER COMPANY
By: /S/ SHELLEY A. FARNHAM
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Shelley A. Farnham
V.P. Human Resources & Secretary
Dated: March 27, 2006