Thames Water CEO and CFO decline bonuses
TWO OF the major bosses at Thames Water will forgo any bonuses for the 2022-2023 financial year, the utilities supplier has announced.
CEO Sarah Bentley and CFO Alastair Cochran have decided to forgo any performance-related bonuses, the latest in a series of moves aimed at addressing “deteriorating” infrastructure and poor performance.
Water companies across the UK have come under fire as levels of sewage discharge into waterways continues to worsen.
Not only has sewage discharge been criticised by environmentalists, customers have also raised concerns that providers were continuing to profit despite rising costs and what they argue is a fall in standards.
Privatised water and sewage companies in the UK were estimated to have paid dividends of around £1.4b in 2022, an increase of more than £500m on the previous year.
The Thames Water bosses join those in Yorkshire Water and South West Water in eschewing bonuses this year.
The company is now in the second year of an eight-year plan to address what it calls: “ageing and deteriorating infrastructure, a legacy of underinvestment, and poor performance.”
It comes in the wake of the launch of a £1.6bn modernisation investment, as well as the re-localisation of customer services, and the expansion of the teams dedicated to repair leaks to more than 1,000 employees.
The company’s remuneration committee is also set to publish a report in July which will lay out changes to “executive compensation” to align with customer and regulator priorities.
It also comes as regulator Ofwat announces it will begin imposing increased fines for faults in pollution measurement practises from 2025.
The regulator further announced it would set “binding” targets for the first time aimed at reducing storm overflow and which will apply to all discharge.
Ms Bentley said: “We are a relatively new team executing an eight-year turnaround plan to transform Thames Water and we have taken some important steps forward this year.
“The turnaround plan is not yet where I want it to be primarily due to significant headwinds from extraordinary energy costs, coupled with two severe weather events.
“These have hit our customer and environmental performance–against this backdrop it simply doesn’t feel right to take my bonus this year.”
She continued: “At a time when customers and regulators are properly focused on the environmental and service performance of water companies, it is right that we lead the way in setting a remuneration structure which focuses management on tackling the most pressing challenges – improving customer service, reducing leaks, and focusing on the health of our rivers.”