The UK government has banned 'unfair' bonuses for senior executives at six water companies (Anglian Water, Southern Water, Thames Water, United Utilities, Wessex Water, Yorkshire Water) under new Water Act rules. The ban, backdated to April 2024, targets firms failing environmental and consumer standards, lacking financial resilience, or convicted of criminal offenses, in response to public concern over sewage spills and rising bills.
Bosses' bonuses banned at six water companies
SewageOfwatWater pollutionEnvironmentWater
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TL;DR: Key points with love ❤️The UK government has banned 'unfair' bonuses for senior executives at six water companies (Anglian Water, Southern Water, Thames Water, United Utilities, Wessex Water, Yorkshire Water) under new Water Act rules. The ban, backdated to April 2024, targets firms failing environmental and consumer standards, lacking financial resilience, or convicted of criminal offenses, in response to public concern over sewage spills and rising bills.
Trending- 1 Water companies paid £112m in executive rewards over the past decade, with £7.6m paid last year alone.
- 2 The beefed-up Water Act comes into force (Friday).
- 3 The ban on bonuses is backdated to April 2024.
- 4 An independent Water Commission review found the water industry in England and Wales failing (this week).
- 5 Thames Water was fined £122.7m for breaching rules over sewage spills and shareholder payouts (last month).
- 6 US private equity giant KKR pulled out of a £4bn rescue deal for Thames Water (earlier this week).
- 7 Campaigners found the number of pollution incidents in England was at a 10-year high (April).
- Executives at the six named water companies will not receive bonuses this year.
- Ofwat gains powers to force firms to claw back bonuses or face enforcement action.
- Increased scrutiny on water companies' financial practices and environmental performance.
- Public trust in the water industry has been shaken.
- Calls for fundamental reform of the water industry.
- Water companies are focused on investing a record £104bn over the next five years.
What: The UK government has banned 'unfair' bonuses for senior executives at six water companies: Anglian Water, Southern Water, Thames Water, United Utilities, Wessex Water, and Yorkshire Water.
When: This year (ban applies), backdated to April 2024 (effective date), Friday (Water Act comes into force), last year alone (£7.6m in bonuses paid), over the past decade (£112m in rewards), this week (review found water industry failing).
Where: England, UK.
Why: To address growing public concern about sewage spills and rising bills, and to hold water companies accountable for failing to meet environmental and consumer standards, lacking financial resilience, or being convicted of criminal offenses. The government aims to ensure bosses only receive bonuses for good performance.
How: New measures in the beefed-up Water Act allow the regulator Ofwat to force firms to claw back bonuses or face enforcement action. The ban applies to share awards as well as cash. Officials will also look into companies trying to circumvent the ban by raising executives' base salaries.