The water firms banned from paying bonuses to senior bosses under new laws
Under-fire water bosses won’t get bonuses this year
- Six water companies have been banned from paying bonuses to senior executives for the financial year 2024/25 due to failure to meet environmental, consumer, or financial standards.
- The affected companies are Thames Water, Yorkshire Water, Anglian Water, Wessex Water, United Utilities, and Southern Water.
- The ban, enacted under the Water (Special Measures) Act, allows Ofwat to reclaim bonuses paid out during the restricted period, although companies may offer rewards in 2025/26 if they comply with regulations.
- Environment Secretary Steve Reed said that bonuses should only be awarded for good performance and not for failing to address water pollution.
- River Action, while welcoming the ban, expressed concerns about companies potentially increasing salaries to compensate for lost bonuses and called for a refinancing of water companies for public benefit.