Home›Real Estate›Industry›Thames Water paid finance chief £1m signing fee amid a…

Thames Water paid finance chief £1m signing fee amid administration talks

The Department for Environment, Food and Rural Affairs called the payment unacceptable and said it expects firms to follow bans on performance-linked bonuses for polluting water bosses.

Reported · Written up by our desk · Industry

Thames Water has paid its finance chief a £1 million signing fee, despite the utility being on the brink of a government-handled administration, according to coverage by the Guardian Business.

The environment ministry, Defra, criticized the payout as unacceptable, noting that Thames is one of at least eight water companies banned from paying performance-related bonuses due to continued environmental failings tied to its infrastructure.

Thames serves water and sewage customers across London and the Thames valley, and has been near collapse for more than two years. The company also told MPs that it made the payment at the end of last month after taking legal advice over its obligations.

The Guardian Business reported that Andy Burnham has previously suggested the government should take control to write off debts worth billions of pounds. Creditors have been negotiating to take ownership, and offered the government a golden share to help avoid debt write downs, while Defra said Ofwat’s review will assess whether and how bonus rules should be strengthened.

More like this

Sources