Thames Water has opted to not pay greater than £2m in retention awards to greater than 20 of its prime executives this month amid a political outcry over the funds.
The choice to not completely cancel or at hand over the awards dangers being labelled a fudge by critics of the corporate, however avoids the potential of a pre-Christmas bonus row as Thames Water races to finalise a multibillion-pound rescue led by its largest group of collectors.
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Sources mentioned that the federal government and Ofwat, the water business regulator, had been notified of the bonus determination this week.
The £2.46m payouts, which have attracted fierce scrutiny from the Commons setting, meals and rural affairs choose committee, comply with an analogous cost which was made earlier this 12 months.
A bigger award of about £13.5m is because of be made below the retention scheme schedule in the course of the course of 2026.
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Mr Carmichael wrote to Sir Adrian final month demanding to know by December 1 whether or not the cash could be handed out.
Chris Weston, Thames Water’s chief govt, is already the topic of a bonus ‘ban’ imposed by the regulator, Ofwat, below new guidelines stopping payouts at water corporations that are failing to fulfill environmental, monetary resilience or client requirements.
He’s not among the many 21 executives eligible for the retention funds.
Thames Water’s survival battle will proceed till nicely into subsequent 12 months because it seeks Ofwat’s approval for a deal that can contain collectors injecting about £5bn into the enterprise.
They’d additionally write off billions of kilos in debt they’re owed in return for higher leniency from regulators over future environmental penalties and targets.
With out an settlement, Thames Water would successfully be nationalised by way of a course of known as a Particular Administration Regime.
On Tuesday, Thames Water declined to touch upon the retention awards determination.
