United Utilities has come under fire for proposing a £435,000 annual share allowance for its chief executive, Louise Beardmore, a move critics have labelled “corporate greed in plain sight.” The water company’s annual report reveals that Beardmore is set to receive the first tranche of this allowance in August, with a second instalment in February 2026. She must hold the shares for at least two years.
Shareholder Vote on July 17
The proposal will be put to a shareholder vote at the company’s annual general meeting on July 17. It has drawn sharp criticism from campaigners, particularly given that Beardmore was denied a £417,000 bonus for 2024-25 by regulator Ofwat after an incident at a reservoir in December 2024 resulted in the death of thousands of fish.
James Wallace, chief executive of River Action, said: “Calling a £435,000 bonus an ‘allowance’ fools nobody. This is corporate greed in plain sight.” He added: “The era of obscene executive payouts must end, with real personal sanctions, including custodial sentences for the worst offenders.”
Pay Package Details
The annual report shows Beardmore received an £830,000 bonus for the 2025-26 financial year and long-term incentive awards worth £712,000. Her total pay package rose 44% to £2.5 million in 2025-26, up from £1.4 million in 2024-25, when her bonus was cancelled and long-term awards reduced to £567,000 due to the reservoir incident.
United Utilities stated that the share allowances for Beardmore and chief financial officer Phil Aspin, who is in line for £280,000 annually, will reduce the maximum potential yearly bonuses to 100% of salary, down from 130%, and cut long-term share awards from up to 200% of salary to 175%. The company said the move aims to “retain and ensure the stability of the executive team and provide a competitive overall remuneration opportunity.”
Salary Increases and Justification
Beardmore and Aspin’s annual salaries were increased by 20% to £870,000 and £560,000 respectively in July 2025. In the annual report, remuneration committee chairwoman Kath Cates said: “The committee has thought very carefully about how to construct a fair and balanced remuneration policy that will allow us to continue to retain and incentivise our experienced leadership team, and attract new talent.” She added: “We recognise that the proposals are somewhat unusual in the context of UK-market norms but believe that the unique circumstances which our sector faces (including competing stakeholder priorities and an ever-evolving regulatory environment) warrant adoption of a tailored approach.”
Customer Payments Excluded
United Utilities stressed that executive director pay for 2025-26 would not be funded by customers, aiming to address concerns over water sector remuneration. “Recognising that executive remuneration in the water sector remains a contentious matter… the board has decided that for 2025-26 none of the pay received by the executive directors will be paid for by customers. This goes beyond our previous commitment that customers would not pay for performance-related pay outcomes,” the company said.
