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Thames Water paid CFO Steve Buck a £1m signing fee
The payment was funded from a £3bn emergency debt package and comes as the UK government considers taking control of the utility to address its debt and environmental failings.
Thames Water has paid its chief financial officer, Steve Buck, a £1m signing fee, according to reporting by the Guardian Business and Sky News, despite heightened scrutiny of the company’s finances as it seeks to avoid being brought under public control.
The utility said the payment was made last month, with the decision reflected in a letter sent by chair Sir Adrian Montague to MPs on the environment, food and rural affairs select committee. Thames Water also said it took legal advice over its obligations before making the payment.
Thames Water provides water and sewage services to 16 million customers in London and the Thames valley and has faced ongoing pressure tied to environmental failures. The company is one of at least eight water firms banned from paying performance related bonuses because of continued problems tied to its infrastructure.
The £1m fee was drawn from a £3bn emergency debt package agreed last year with creditors, designed to keep the company operating while talks continue over a potential longer term takeover by creditors. The Guardian Business noted the payment is likely to intensify calls for the government to step in via a special administration regime, after creditors sought to avoid debt write downs using a proposed “golden share.”