"Bosses of companies that illegally dumped sewage into England's rivers and seas and presided over water shortages which left thousands of people in misery have still been paid millions in bonuses despite the ban. The previous environment secretary Steve Reed attempted to ban failing water companies from paying bonuses to chief executives and chief financial officers. However, the legislation passed in the Water (Special Measures) Act last year only referred to performance-related bonuses from specific regulated companies."
"Thames Water had its bonuses banned after being deemed a failing company, but still plans to pay its top staff millions in retention payments from a controversial high-interest loan that was meant to be used to keep the firm afloat. This is now allowed as these are labelled as non-performance-related bonuses. Yorkshire Water was also banned from paying its bosses bonuses this year, but its chief executive, Nicola Shaw, netted 1.3m in an offshore parent company over two years."
"The boss of South East Water, David Hinton, is on track for 400,000 in bonus pay by 2030 despite tens of thousands of people in Tunbridge Wells having had their water cut off for weeks. Wessex Water's former boss Colin Skellett received a 170,000 bonus in the same year as the bonus ban on the utility. The payment was labelled as a bonus, but was allowed because it was made by a parent company."
Legislation banning performance-related bonuses for failing water companies applied only to specific regulated payments, allowing firms to relabel or shift payments to linked or parent companies. Executives connected to illegal sewage dumping and severe water shortages have still received millions through retention payments, offshore parent companies, and alternative payment labels. Thames Water plans retention payments funded by a high-interest loan despite a ban on its bonuses. Yorkshire Water’s chief executive received 1.3m via an offshore parent, South East Water’s chief is on track for 400,000 by 2030 amid outages, and Wessex’s former boss received 170,000 through a parent company. Ministers will close the loopholes.
Read at www.theguardian.com
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