Thames Bosses Get Bonuses Blocked as Regulator Cracks Down
(Bloomberg) -- Thames Water was one of six UK water companies to see management bonuses blocked by new rules in the last financial year, as pressure mounts on the firms to do more to tackle chronic pollution.
More than £4 million ($5.2 million) of potential bonuses were barred by new regulations on performance-related pay, regulator Ofwat said in a report Wednesday. The failures mostly involved serious pollution incidents.
There’s been widespread public anger over sewage spills into Britain’s waterways, and decades of underinvestment mean the leaks are getting worse. Putting a stop to bonuses is aimed at addressing the public perception that bosses are rewarded regardless of any efforts to clean up the industry.
Thames, the largest company in the sector, was among the most-polluting last year, the Environment Agency said last month. Its poor environmental record — as well as sky-high debts — have left the firm in crisis, and it’s effectively been in the hands of creditors since shareholders walked away last year.
The government also plans to make it easier to fine water companies that harm the environment, according to plans announced in October.
The other utilities where bonuses were blocked are Anglian Water, Southern Water, United Utilities, Wessex Water and Yorkshire Water, Ofwat said Wednesday.
(Updates with plan for fines in penultimate paragraph.)
©2025 Bloomberg L.P.
