Overview
- Thames Water’s remuneration committee deferred roughly £2.46m due this month to 21 senior managers until further notice, informing the government and Ofwat.
- A similar tranche of almost £2.5m was paid in April and was not clawed back, and a larger payout scheduled for next year remains unresolved.
- These are retention awards, which are not covered by the Water (Special Measures) Act’s ban on performance-related pay for top executives; CEO Chris Weston is under a separate Ofwat bonus ban and is not eligible for the scheme.
- The awards were to be funded from a £3bn emergency loan provided by class‑A creditors at about 9.75% interest plus fees, a funding source that has intensified criticism.
- Creditors are seeking Ofwat approval for a plan including about £5bn in new equity and debt write-offs in return for greater leniency on future environmental penalties and targets, with special administration a risk if no deal is approved.