Thames Water is under fire for a “flimsy PR stunt” as it prepares to report its CEO, Sarah Bentley, will receive a pay package of £1.5 million, nearly double her annual salary.
The report follows her decision to forgo her bonus amid intense criticism of Britain’s water companies.
Last month, Bentley said she and the firm’s CFO would waive their bonuses and any long-term incentive plan payments for the 2022-23 financial year.
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But it has been revealed one-off payments will inflate her pay.
It has surpassed last year’s bonus as part of a “golden hello” incentive package to attract her from rival company Severn Trent.
Reports indicate Bentley received a “final buyout payment” of £548,780 last July to compensate for forfeited share awards from Severn Trent.
Additionally, she received £178,000 linked to Thames Water’s performance during her initial two years in the role.
Though she turned down the bonus, her total remuneration for the previous financial year is approximately £1.5 million.
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This includes her £750,000 salary, a £90,000 cash pension payment, and various additional benefits like a car, travel allowance, and healthcare coverage.
The issue of executive pay has become a focal point for campaigners advocating for cleaner water.
England’s water companies have faced scrutiny for their pollution records, with instances of sewage discharge into rivers and seas.
Thames Water, in particular, has been accused of relying on water bodies as “toilets” due to underinvestment and profit-seeking.
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Critics argue the move is merely a public relations tactic, given the substantial total pay packages they still receive.
The GMB union is outraged by the situation, highlighting the deteriorating infrastructure, disgruntled workforce, and environmental concerns.
The union criticised Bentley for accepting a significant pay package while Thames Water has yet to address the water workers’ annual pay award due next month.
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Thames Water would disclose further details of Bentley’s remuneration and her future compensation in the upcoming annual report.
Her package is expected to be lower than the £2 million received in 2021-22 but more than the £1.2 million in the previous year.
Thames Water defended Bentley’s decision, claiming she declined any incentive payments for the 2022-23 performance year while still receiving the final buyout payment unrelated to Thames Water’s performance.
The company recently unveiled a £10 billion plan to modernise sewers and reduce sewage spills into waterways, but it faced criticism for passing the costs onto consumers.
