Water company executive pay rises despite government bonus ban
8 reported1 unconfirmed
According to a Guardian analysis of company accounts, total pay for chief executives and chief financial officers at 14 water companies serving most of England and Wales rose 1.5% to £25.3 million in the year to March, despite a government bonus ban introduced in 2025. The biggest package went to United Utilities chief executive Louise Beardmore, who received £2.5 million, £1.1 million more than the previous year. Anglian Water chief executive Mark Thurston received £1.9 million, including a £500,000 “retention payment” that the company said was not a bonus because it was not linked to the regulated water company’s performance. Eight companies said they expect to be covered by the bonus ban for 2025-26, which applies retrospectively to companies responsible for the most serious pollution incidents or financial failings. The Guardian reported that some companies gave executives extra awards they argue are not “performance-related payments” and therefore not covered by the ban. The news comes as water bills rise, Thames Water faces insolvency, and about 23 million people are covered by hosepipe bans with drought status looming.
What’s reported
Total pay for chief executives and chief financial officers at 14 water companies rose 1.5% to £25.3 million in the year to March, up from £24.9 million the year before.
Louise Beardmore of United Utilities received £2.5 million, £1.1 million more than the previous year.
Mark Thurston of Anglian Water received £1.9 million, including a £500,000 “retention payment.”
Eight companies expect to be covered by the bonus ban for 2025-26.
The bonus ban applies retrospectively to companies responsible for the most serious pollution incidents or financial failings.
Thames Water paid £4.1 million in bonuses to senior staff not covered by the ban.
About 23 million people are covered by hosepipe bans as drought status looms.
Andy Burnham has suggested he could move Thames Water into temporary government ownership.
Open questions
The article does not specify which companies will be formally confirmed as subject to the bonus ban by Ofwat, which is not expected to confirm until autumn.
Key figures
Mark Thurston, chief executive of Anglian Water
Louise Beardmore, chief executive of United Utilities
Andy Burnham, political figure who wants more public control over water industry
Adrian Ramsay, Green party MP
Nicola Shaw, chief executive of Yorkshire Water
Heidi Mottram, chief executive of Northumbrian Water
Andrew Speke, interim director of the High Pay Centre
Gary Carter, national officer for the GMB union
Ruth Jefferson, chief executive of Wessex Water
Sources: The Guardian
