Close Menu
economyuae.comeconomyuae.com
    What's Hot

    How to play Apple shares and big bank earnings as the stock market hits another record

    July 10, 2025

    Pentagon strikes investment deal with US critical minerals producer

    July 10, 2025

    Inflation from tariffs should hit this year, consumer-brands company says

    July 10, 2025
    Facebook X (Twitter) Instagram
    Facebook X (Twitter) Instagram
    economyuae.comeconomyuae.com
    Subscribe
    • Home
    • MARKET
    • STARTUPS
    • BUSINESS
    • ECONOMY
    • INTERVIEWS
    • MAGAZINE
    economyuae.comeconomyuae.com
    Home » Thames Water refuses to claw back bonuses despite government threats
    Company 

    Thames Water refuses to claw back bonuses despite government threats

    Arabian Media staffBy Arabian Media staffJuly 9, 2025No Comments3 Mins Read
    Facebook Twitter LinkedIn Telegram Pinterest Tumblr Reddit WhatsApp Email
    Share
    Facebook Twitter LinkedIn Pinterest Email


    Unlock the Editor’s Digest for free

    Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.

    Thames Water has refused to claw back bonuses worth £2.5mn, despite UK government threats to block what ministers dubbed “outrageous” payments at the utility that is trying to avoid renationalisation.

    The bonuses handed out to 21 senior staff in April were disclosed on Wednesday in a dump of documents by the parliamentary environment committee. It has recalled heads of Thames Water to give evidence next week amid “new financial concerns” for the UK’s biggest water company.

    The bonuses were the first instalment of a package of planned payouts to reward senior staff for securing a £3bn emergency loan from the company’s senior creditors in the spring.

    Thames Water chair Sir Adrian Montague said in correspondence to the committee released on Wednesday that there had been “no discussions” with government or the regulator, Ofwat, “in relation to recovering those payments which have already been made”.

    “The board does not intend to recover this money.”

    Environment secretary Steve Reed previously vowed to block the payments. A government spokesperson said in May that ministers would intervene to block the attempt by “Thames bosses to try to plunder the company”. 

    Thames Water then said it would “pause and reconsider” the so-called “retention payments” to its senior staff. The senior management team was set to receive £18.5mn before the outcry.

    Ministers have since clarified that legislation to block bonuses will only cover chief executives or chief financial officers of a handful of water suppliers this year, including Thames Water. The company’s payout does not include bonuses to Montague, its chief executive or chief financial officer.

    In a separate letter to the committee, Ofwat disclosed that it had not known about the bonuses before an evidence session with MPs in May. Ofwat chief executive David Black said the watchdog was “disappointed at the lack of transparency that Thames Water has shown in this regard”.

    Black admitted that Ofwat does not have the power to claw back the bonuses because none of its recipients are Thames board members.

    The group of Thames Water’s top-ranking bondholders is now the de facto frontrunner to take control of the UK’s largest water company after US private equity firm KKR walked away from its bid to recapitalise the company last month. Ofwat is currently deliberating on a backup plan by the utility’s senior creditors to provide fresh equity of nearly £4bn to rescue the group. 

    In his letter to the environment committee, Montague said other approaches had occurred in recent weeks, although he did not appear to give them much credibility.  

    “We have also been approached by an entity which identifies as Titanium SPV, although we have been unable to verify that such entity exists,” he wrote. 

    “And in very recent days we have been approached by an individual connected with the water industry with an outline plan to recapitalise Thames Water by tokenisation of debt but with no or low equity injected.”



    Source link

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Telegram Email
    Previous ArticleAuthorities sign MoU to enhance efficiency
    Next Article Why interest-rate cuts won’t be the fuel the stock market needs to rocket higher
    Arabian Media staff
    • Website

    Related Posts

    Elon Musk is still the Tesla wild card

    July 10, 2025

    Trading firms Virtu and Citadel Securities clash over new options exchange

    July 10, 2025

    Ministers reveal ban on upward-only rent deals for commercial leases

    July 10, 2025
    Add A Comment
    Leave A Reply Cancel Reply

    Top Posts

    10 Trends From Year 2020 That Predict Business Apps Popularity

    January 20, 2021

    Shipping Lines Continue to Increase Fees, Firms Face More Difficulties

    January 15, 2021

    Qatar Airways Helps Bring Tens of Thousands of Seafarers

    January 15, 2021

    Subscribe to Updates

    Your weekly snapshot of business, innovation, and market moves in the Arab world.

    Advertisement

    Economy UAE is your window into the pulse of the Arab world’s economy — where business meets culture, and ambition drives innovation.

    Facebook X (Twitter) Instagram Pinterest YouTube
    Top Insights

    Top UK Stocks to Watch: Capita Shares Rise as it Unveils

    January 15, 2021
    8.5

    Digital Euro Might Suck Away 8% of Banks’ Deposits

    January 12, 2021

    Oil Gains on OPEC Outlook That U.S. Growth Will Slow

    January 11, 2021
    Get Informed

    Subscribe to Updates

    Your weekly snapshot of business, innovation, and market moves in the Arab world.

    @2025 copyright by Arabian Media Group
    • Home
    • Markets
    • Stocks
    • Funds
    • Buy Now

    Type above and press Enter to search. Press Esc to cancel.