Water company bosses’ total pay rose over the past year despite a government bonus ban and public outrage over pollution and bills, the Guardian can reveal. One chief executive, Mark Thurston of Anglian Water, received £1.9m – including a £500,000 “retention payment” – despite the ban. The biggest package went to Louise Beardmore, chief executive of United Utilities, who received £2.5m, £1.1m more than the previous year.
Overall reported pay packets rose by 1.5% to £25.3m for chief executives and chief financial officers in the year, thanks to salary rises and the use of pay loopholes, according to analysis of the 14 companies that serve most of England and Wales. With water bills soaring and Thames Water on the brink of insolvency, the revelation sparked criticism of companies for finding ways to pay bosses more despite the bonus ban being introduced in 2025.
Eight companies said they expect to be covered by the bonus ban for 2025-26, with bans applied retrospectively to companies responsible for the most serious pollution incidents or financial failings. Yet some companies argued that extra awards were not “performance-related” and thus not covered by the ban. Anglian Water claimed Thurston’s retention payment was funded by shareholders for work outside the regulated company, while Yorkshire Water’s parent company paid its chief executive Nicola Shaw an extra £600,000 on top of fixed pay.
Adrian Ramsay, a Green party MP, said: “The astronomical sums paid to water company executives are a perfect illustration of everything that is wrong with treating this essential public resource as a private commodity.” He called for water to be brought back into public ownership. Gary Carter, a national officer for the GMB union, said: “Finding ways round the bonus ban further tarnishes the reputations of private water companies.”
The news adds pressure on Andy Burnham, who has suggested moving Thames into temporary government ownership after years of financial struggles. Water companies have been allowed to raise bills sharply to invest in infrastructure, but persistent sewage dumping and recent hot weather have heightened customer frustrations.
