UK Water Companies Bypass Bonus Ban; Southern Water Boss Paid Over £1 Million Amid 119 Convictions

Water companies in the UK have circumvented a government ban on executive bonuses by renaming bonuses, increasing base salaries, granting multiple directorships, shares, and perks to executives. This has allowed executives to receive substantial pay packages despite poor company performance and regulatory issues. Southern Water's chief executive, for instance, received a pay package exceeding one million pounds, a figure that has drawn criticism from ministers and the public. Southern Water has faced 119 criminal convictions related to environmental violations, including sewage dumping and unresolved leaks, while customers have reportedly borne the financial burden. The chairman of Thames Water had warned the government that banning bonuses would lead to salary increases, a prediction confirmed by subsequent actions where Thames Water managers received £2.5 million in bonuses despite the ban. The government is under scrutiny for not taking effective action to control executive pay in the water sector. Additionally, a think tank report advocating for the nationalization of the water industry, with an estimated cost of £100 billion, was commissioned and funded by major water companies including Anglian Water, South West Water, and United Utilities. Over the past 11 years, executives in the water industry have collectively earned £278 million, raising concerns about the allocation of public funds and corporate governance in the sector.