Thames Water issues massive bonuses to bosses

Anybody out there remember Ofwat issuing a ban on water bosses’ bonuses at the tail-end of 2025? Well apparently Thames Water doesn’t — it just increased its senior managers’ bonus payouts to an eye-watering £4.1m.

As the Canary reported only yesterday, 15 July, the prospect of public ownership is looming over the failed, sewage-spewing water company. The company is currently buried under £18.5 billion of debt, up from £16.8 billion a year ago, and is set to run out of money at the end of the year.

What better time for the bosses to cut themselves a nice fat paycheck, eh? Job well done to the Thames Water C-suite.

The ‘bonus ban’

Water regulator Ofwat gained the ability to impose restrictions on bosses’ bonuses under the Water (Special Measures) Act 2025. The watchdog first announced that it had exercised the new power in November, blocking some £4m in cash rewards. The Canary’s Alex/Rose Cocker wrote:

Over the last year, a total of six water companies have fallen foul of the new rule. Namely, Anglian Water, Southern Water, Thames Water, United Utilities, Wessex Water, and Yorkshire Water. For the most part, this is because they just can’t stop themselves from polluting our environment.

The companies in question created Category 1 pollution incidents. This category, the most serious of three, is made up of pollution events that “have a serious, extensive or persistent impact on the environment, people or property”. Because of these serious pollution incidents, the six companies – in compliance with Ofwat rules – didn’t award their bosses with a ‘job well done’ paycheck this year.

Thames Water — You’ve got to pay bonuses…

However, Thames Water apparently thinks its bosses have put in a praiseworthy performance this year. The company hiked payouts to “key management personnel” from £2.8m in the year to March 2025 to £4.1m this year.

In case you’re wondering why Ofwat hasn’t stepped in, the regulator’s new powers only apply to companies’ chief executives and finance managers. Instead, Thames Water paid out to other members of the executive team and the board.

What did you think they just wouldn’t pay any bonuses? It’s a thing unheard of.

Meanwhile, the company also increased chief executive Chris Weston’s pay, and issued him a hefty £99,000 bonus to boot. ‘But wait,’ we hear you cry, ‘didn’t you just say the water companies aren’t allowed to pay their CEOs a bonus anymore?’

Well, you see, this bonus was actually deferred from before the ban was introduced. Nothing at all to see here, folks.

‘It flies in the face of basic fairness’

Regarding this blatant creative interpretation of the rules, environment secretary Emma Reynolds said:

It’s outrageous that one of the worst-performing water companies is handing out bonuses and inflation-busting pay rises to its executives.

It flies in the face of basic fairness, and the British public are right to be furious. We’ve banned bonuses for polluting water bosses and will be taking action to prevent bonuses by any other name.

That’s all well and good, but Reynolds’ government have previously stated outright that they would prefer “a market-based solution”, rather than nationalisation via placing Thames Water under special administration measures.

Water is a basic necessity of human life. The companies supplying it in the UK have a total monopoly — the consumers (that is, anyone who wants to remain alive) have no alternative.

As such, and as they’ve demonstrated time and again, the suppliers have virtual free rein to break the rules. They can dump sewage, neglect infrastructure and cut themselves a weighty bonus at the end, all with no meaningful or lasting consequences.

The market-based solution is incompatible with “basic fairness”. Until Reynolds and her government acknowledge that fact, we’re going to keep writing this same damn article again, and again, and again.

Featured image via the Canary