Thames Water says it will raise base pay of bosses if Ofwat limits bonuses
Share:
Struggling water firm tells regulator for England and Wales proposals would make it hard to attract talent to sector. Troubled Thames Water has threatened to increase the salaries of its executives if the industry regulator sees through on plans to limit bonuses for the bosses of water companies.
The company, which serves more than 16 million customers across the London area and the Thames valley, is attempting to stabilise its debt-laden finances. It has told Ofwat that it intends to raise base executive pay. Thames told Ofwat that the bonus proposals would make it hard to attract talent to the sector, according to a report submitted in early December by the company’s regulatory strategy committee to the regulator’s board, the Financial Times reported.
“We have made it very clear to Ofwat that, if it proceeds with its proposals, it is highly likely that base pay will need to be increased to compensate for the loss of performance-related pay plans,” said the report by Jonathan Haskins, the chief risk and compliance officer at Thames Water.
“We also highlight the impact the proposals will have on attracting, retaining and motivating critically needed talent across the sector, and the importance of this for attracting investment.”. In recent years, water companies have faced public anger and political backlash over executive bonuses, leaks and sewage discharge at a time when many people have also come under increasing financial strain.
Chris Weston, the chief executive of Thames Water, said last month that it needed to offer “competitive packages” to attract talent, as he defended bonuses worth £770,000 that were awarded to him and the company’s finance chief. Weston was awarded £195,000 for his first three months at Thames, in early 2024.
