The UK government has enacted new regulations banning certain water companies from issuing bonuses to senior executives if they fail to meet environmental and consumer standards. The regulations, effective from April 2024, apply to six major firms that have been penalized for various infractions. This initiative has emerged in response to rising public dissatisfaction concerning sewage spills and high bills while executive bonuses have exceeded £112 million over the past decade. Critics argue that further reforms are needed to hold these companies more accountable and prevent circumventing the ban by increasing base salaries.
A number of water companies have been banned from paying "unfair" bonuses to senior executives under new rules, the government has announced. The measures apply to water companies that do not meet environmental and consumer standards, are not financially resilient or have been convicted of a criminal offence.
Under the beefed-up Water Act, six firms are banned from paying bonuses this year including Anglian Water, Southern Water, Thames Water, United Utilities, Wessex Water and Yorkshire Water. The ban means regulator Ofwat can force firms to claw back bonuses that have been paid or face enforcement action.
#water-companies #government-regulations #executive-bonuses #environmental-standards #consumer-protection
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