Thames Water executive pay sparks nationalisation calls amid debt restructuring
Campaign group We Own It and MP Andy Burnham demand government intervention as utility faces scrutiny over executive remuneration while banned from performance bonuses.
Thames Water has confirmed it paid its chief financial officer, Steve Buck, a £1 million signing fee drawn from a £3 billion emergency debt package agreed with creditors. The payment, made at the end of last month following legal advice regarding the company’s obligations, has intensified scrutiny over the utility’s governance as it navigates a potential transition to public control.
The disclosure was made in a letter from chair Adrian Montague to the environment, food and rural affairs select committee, as first reported by Sky News. The fee was deferred from April 2025, when Buck joined Thames Water from Pennon Group, the owner of South West Water. This payment comes despite the company being one of at least eight water utilities banned from paying performance-related bonuses due to ongoing environmental failings.
Critics argue the remuneration is indefensible given the firm’s precarious financial position. Cat Hobbs, director of the campaign group We Own It, stated that the company was “taking the mickey” and urged MP Andy Burnham to intervene immediately. Hobbs argued that with shareholders having effectively walked away, the debt should be cut and refinanced in public hands to protect the 16 million customers served in London and the Thames valley.
Buck’s total remuneration for the financial year to 31 March was £591,000, comprising a £491,000 base salary and a £25,000 discretionary onboarding payment. His base salary was subsequently increased to £630,000 in April. The £1 million signing fee was not detailed in the annual report released last month, although the company had previously disclosed a retention payment subject to continued employment, which was paused during consideration of the bonus ban terms.
Executive pay remains under the control of Thames Water’s remuneration committee, even though the emergency funding originates from creditors rather than customer bills. Sky News reported that the utility also reached settlements with 14 other executives, including two who had departed, for sums lower than originally planned. Additionally, the company disclosed last month that it had paid £4.1 million in bonuses for senior managers.
Creditors are currently negotiating with the government to take formal ownership, offering a “golden share” to avoid debt write-downs, contingent on regulatory leniency regarding future fines. However, the continued distribution of millions in executive payments is expected to strengthen political pressure for the government to assume formal control via a special administration regime. Thames Water and the creditor group declined to comment on the matter.
