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Some executives forgo bonuses this year - water regulator Ofwat

Published 08/11/2023, 10:50
Updated 08/11/2023, 10:57
© Reuters.

(Reuters) - Water regulator Ofwat said on Wednesday executives of six water utilities across England and Wales refused a bonus this year after the regulator took measures to tighten returns that do not link to the company's performance.

"Senior executives of six companies refused a bonus for 2022-23, and at five other companies, executive bonuses were paid for by shareholders, not customers," Ofwat said in a statement.

Ofwat announced in March, that it would take measures to crack down on inappropriate dividends that do not match the company's performance and proposed plans to ensure executive bonuses do not come out of customers' pockets.

The regulator also said it will continue to report on its review of bonuses annually.

Britain's water companies have been heavily scrutinized by customers and the government for piling up debt and permitting shareholders and executives to profit at the expense of the ecosystem.

The industry, which was privatised in 1989, was also criticised over sewage releases that dirtied rivers and beaches and hammered public confidence in the sector over price increases in the middle of a cost-of-living crisis.

All three listed water firms, United Utilities, Severn Trent (LON:SVT) and Pennon (LON:PNN) are scheduled to announce half-year results this month.

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