The board of the embattled water company Thames Water is poised to make a crucial decision on whether to pay out millions of pounds in bonuses to its top executives, Sky News has learned.
Controversial Payouts Under Scrutiny
Members of Thames Water's remuneration committee are scheduled to hold talks next week to determine if they should proceed with nearly £2.5 million in retention payments. The payments are intended for 21 of the company's most senior managers. This comes after the committee sought legal advice on the contentious issue.
The proposed sum of £2.46 million is identical to a previous tranche of retention money distributed to executives earlier in 2025. The decision is being made against a backdrop of intense political and public scrutiny, with the company locked in a desperate battle for its future.
MPs Demand Answers Amid Survival Battle
Pressure from Westminster is mounting. Sir Adrian Montague, the Chairman of Thames Water, has written to Alistair Carmichael, who chairs the Environment, Food and Rural Affairs Select Committee. The letter informed Mr Carmichael of the remuneration committee's impending deliberations.
This correspondence was in direct response to a demand from Mr Carmichael, who last week insisted on knowing by 1 December whether the multimillion-pound payments would be authorised. The company's chief executive, Chris Weston, is not part of this specific retention scheme. He is already subject to a bonus ban imposed by the water regulator, Ofwat, under new rules targeting underperforming companies.
Broader Crisis and Financial Restructuring
The controversy over executive pay unfolds as Thames Water's survival remains in the balance. The utility's largest group of creditors continue negotiations with Ofwat, other regulators, and the government. The aim is to secure a deal that would write off billions of pounds of the company's debt.
In return for this debt relief and a potential injection of billions in fresh equity, the creditors are seeking an adjustment to Ofwat's approach regarding future financial penalties. Thames Water declined to comment when approached by Sky News about the retention payments.
