The directors of Thames Water will convene in the coming days to deliberate on whether to proceed with retention payments exceeding £2 million to senior executives amidst intense scrutiny from Members of Parliament. Sky News has obtained information that the remuneration committee of the crisis-ridden water utility will engage in discussions next week following legal counsel on whether to move forward with the second installment of a multimillion-pound payout to 21 of its highest-ranking managers. The total sum of the latest payouts amounts to £2.46 million, mirroring a previous tranche disbursed earlier this year.
A source from Whitehall disclosed on Tuesday that Sir Adrian Montague, the chairman of Thames Water, had corresponded with Alistair Carmichael, the chair of the environment, food, and rural affairs select committee, to apprise him of the remuneration committee’s considerations. Mr. Carmichael had written to Sir Adrian the previous week, demanding clarity by December 1st regarding the distribution of the funds.
Meanwhile, Chris Weston, the chief executive of Thames Water, is currently subject to a bonus ‘ban’ imposed by the regulator Ofwat. This measure is part of new regulations that prohibit payouts at water companies failing to meet environmental, financial resilience, or consumer standards. Notably, Mr. Weston is not part of the retention payment scheme.
The contentious retention payments at Thames Water are pending approval while the company grapples with a battle for survival. The primary group of creditors remains engrossed in discussions with Ofwat, other regulators, and the government to finalize terms for a potential agreement that would absolve billions of pounds of the company’s debt. In exchange, they would inject billions of pounds in fresh equity, contingent on adjustments in Ofwat’s approach to future financial penalties. Thames Water has opted not to provide a comment on the matter.
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