Ofwat Plans to Scrub Hundreds‑of‑Thousands Bonuses for Water CEOs with Poor Records

Water Giants Under Fire: Bonuses Banned

New Rules Mean No Sweet Deals for Messy Management

Ofwat just got the legal teeth to slap a stop sign on bonus payouts for water companies that fail the test or dirty the environment. The Water Special Measures Bill is the law driving this, and from June point‑blank it can kick‑in. So, if Thames Water’s performance is sub‑par, their bonus pockets may suddenly go empty.

Thames Water’s High‑Stakes Game

Debt hovering at £19 million.
Recent loan—potentially £3 billion—to keep the giant from swimming to bankruptcy.
16 million customers, the biggest player on the UK water stage.

“Stop the Cash, Save the Rivers” – Steve Reed, Environment Secretary

“Water companies have been dumping murky sewage into our rivers while lining their own pockets with bonuses. That ends now. We’re banning unjust bonuses for polluting water bosses. The era of profiting from failure is over.”

Job Hunters & Big Bonuses

Thames Water’s chairman, Sir Adrian Montague, told MPs, “We need bonuses worth hundreds of thousands to keep talent from hopping across the industry. If we don’t pay, head‑hunters will swoop in.” Meanwhile, the chief executive, Chris Weston, has been slapped with criticism for a £195,000 bonus after only three months in 2024.

Front‑Line Voices – A Rough Cut

Gary Carter, GMB National Officer, called out the fee‑heavy culture:

“Paying out huge bonuses to gas‑leaking water bosses is a slap in the face to their workers and consumers. Thames Water’s managers come and go, fines mount and finances spiral. The real gold lies in the loyal, long‑serving workforce—the backbone of the company that deserves better pay and a fair bonus for safeguarding failing assets.”