Ofwat is blocking bonuses for CEOs at nine water companies in England and Wales, preventing more than £6.5 million in extra pay. The regulator says the ban is triggered because those firms failed to meet its standards test, which determines whether executives can receive performance-related bonuses under a rule introduced by Labour.
The companies cited include Southern Water, Thames Water, and Welsh water firm Dŵr Cymru, among others. Ofwat highlights a range of failures such as severe pollution, breaches of duties to consumers, and, for Dŵr Cymru, three criminal convictions. Metro also notes Southern Water’s CEO had previously faced scrutiny over a large pay rise.
While the bonus ban applies, Ofwat also draws attention to other forms of executive pay. Some outlets say chiefs received substantial “retention” or other payments that may appear to bypass the spirit of the rules. The Guardian reports Ofwat will tighten the regime and increase monitoring, particularly pointing to retention payments at Anglian Water, and signals a fast-tracked review to reduce risks to public trust.
