Thames Water defers controversial £2.5m in bonuses to bosses
Heavily indebted utility puts back ‘retention payments’ for 21 executives until new year amid search for rescue deal
TL;DR
- Thames Water has deferred £2.5 million in retention payments for 21 senior executives.
- The payments are postponed until the new year, pending a rescue deal.
- Previous bonuses totaling almost £2.5m were paid in April.
- The chair of the company previously misstated that creditors insisted on these payments.
- Retention payments are not banned by the Water (Special Measures) Act, which targets performance-related pay.
- The company is in urgent need of funds and is negotiating with regulators to avoid renationalization.
- Class-A creditors are negotiating a takeover deal and seeking to reduce environmental obligations and fines.