Thames Water paid its concern main a £1m signing-on interest successful July arsenic the institution struggles with a upland of indebtedness and faces impermanent nationalisation.
Steve Buck joined the institution successful April 2025 but it is understood the seven-figure outgo was not made until past period aft the institution had taken ineligible proposal implicit its contractual obligations.
The beingness of the payment, first reported by Sky News,, external was revealed successful a missive from the Thames Water president to MPs connected the Commons Environment, Food and Rural Affairs Committee.
In the letter,, external Sir Adrian Montague said helium understood customers would spot ample payments to elder leaders arsenic "unjust" but argued they were indispensable to halt unit leaving.
The missive said: "The bulk of the squad were brought successful precocious to hole the problems the institution faces and are not liable for causing those problems.
"These talented and experienced individuals person opportunities for roles extracurricular Thames Water and, successful galore cases, person been actively approached by different companies.
"These roles would beryllium little successful the nationalist gaze, little hard and much remunerative."
Sir Adrian described the outgo to Buck arsenic a "necessary incentive" and said the wealth had travel from exigency backing provided by Thames Water's lenders.
He said the institution is facing recruitment and retention difficulties and warned the occupation would "persist" if it was nationalised oregon enactment into peculiar administration.
The premier minister's authoritative spokesperson said: "It's unacceptable that 1 of the worst-performing h2o companies is handing retired immense payments to its executives erstwhile it should beryllium focusing connected improving show and rebuilding nationalist trust.
"We've banned bonuses for polluting h2o bosses. We expect companies to travel some the missive and the tone of the rules."
Under caller rules, introduced past year, h2o companies failing to conscionable cardinal standards would automatically suffer their close to grant definite bonuses.
Alistair Carmichael, Lib Dem MP and seat of the Environment Committee, said: "Money should beryllium going into improving services, not remunerating already well-paid elder executives.
"The authorities were wide successful the aboriginal days that they wanted this to stop. It is evident that they person not succeeded successful this. We request to perceive present from them astir what they mean to bash astir it."
The inferior institution owes astir £20bn and has been moving with creditors and authorities officials to find a mode forward.
Failure to scope a woody could pb to Thames Water being forced into a "special medication regime", a signifier of impermanent nationalisation intended to support the concern operating until a viable solution tin beryllium found.
This would spot government-appointed officials temporarily moving the institution – including backing its operations and upgrading infrastructure arsenic good arsenic dealing with immoderate outstanding debts pursuing a restructuring of the business.
If the institution was subsequently sold to a backstage buyer, the authorities would beryllium capable to recoup immoderate payer cash.
Prime Minister Andy Burnham has antecedently said helium would similar to spot "greater nationalist control" of cardinal h2o and vigor utilities.
In the past year, Thames Water brag Chris Weston saw his wage summation 14% to £1.63m portion different directors received bonuses totalling £4.1m.
Speaking connected the BBC Big Boss interrogation precocious past month, Weston acknowledged determination was choler astir Thames Water pay, but argued that the institution needed to beryllium capable pull "capable radical to assistance crook this institution around".
"If we're not prepared to wage marketplace rates, past they won't travel to america and they won't enactment with us," helium said.
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