Source: Sharecast
According to Sky News on Tuesday, the remuneration committee at the struggling utility company – which is also subject to an Ofwat-imposed bonus ban on firms that fail to meet performance targets – has sought legal advice on if it can proceed with a second instalment of a payout to senior managers.
Thames Water had paid out £2.46m to its most senior directors earlier this year, despite intense backlash from MPs as the company continues to grapple with creditors and the government about its eye-watering debt pile and ongoing operational issues.
Ofwat's new bonus rule blocked a total of £4m in potential bonuses from six water companies in its first year of operation, the regulator announced last month, after a "variety of performance failures, mostly involving category 1 pollution incidents".
Directors from companies that do not meet certain financial resilience, environmental and consumer standards targets will not be eligible for their annual bonus and other relevant performance-related pay.