Fat-cat water bosses are STILL pushing back against plans by regulator to curb inappropriate bonuses
- Regulator Ofwat wants to block inappropriate bonuses as bosses push back
- Companies have raised concerns that pay change could prevent recruitment
Fat-cat water bosses are still pushing back against plans to curb bonuses, The Mail on Sunday can reveal.
Regulator Ofwat wants to block inappropriate bonuses but faces protests from water companies.
New documents from Ofwat’s consultation on the issue reveal several companies raised concerns that shaking up executive pay rules could prevent them attracting talented candidates.
Firms have been blasted for handing huge payouts to bosses despite racking up huge debts and polluting Britain’s rivers.
The industry’s problems were thrust into the spotlight last week when the Government was forced to draw up emergency plans to save Thames Water.
The firm, Britain’s largest water supplier, has debts of £14 billion. Companies in England and Wales have an estimated £65 billion of debt, according to the latest figures
Thames Water handed its chief executive Sarah Bentley (pictured), who left abruptly last week, about £2 million last year, although she said in May that she would forgo this year’s bonus
The firm, Britain’s largest water supplier, has debts of £14 billion. Companies in England and Wales have an estimated £65 billion of debt, according to the latest figures.
Lord Howard, who led the privatisation of the water industry more than 30 years ago under Margaret Thatcher, yesterday said: ‘I think it is arguable the companies have been allowed to take on too much debt,’ he said.
But he defended water privatisation and said industries under public ownership must ‘compete for resources’ with the likes of health, education and police.
Thames Water handed its chief executive Sarah Bentley, who left abruptly last week, about £2 million last year, although she said in May that she would forgo this year’s bonus. But high earners are littered across the water sector, with Severn Trent’s chief executive Liv Garfield pocketing £3.2 million last year. United Utilities boss Steve Mogford took home £3.2 million in 2022, despite the firm having £8.2 billion debt.
David Black, Ofwat chief executive, said that ‘we will review all executive director’s bonus payments’. In an interview with the MoS last year, he said he was facing opposition to Ofwat’s attempts to stop huge sums of money being funnelled to shareholders.
Black singled out Thames Water for criticism at the time, claiming it had ‘poor finances and really poor operational performance’.
Thames Water was contacted for comment.
