Heavily indebted utility puts back ‘retention payments’ for 21 executives until new year amid search for rescue deal
Thames Water has deferred awarding bosses retention payments totalling £2.5m, avoiding a potentially damaging pre-Christmas row as the heavily indebted utility scrambles to agree a multibillion-pound rescue deal.
Sources at the UK’s biggest water company confirmed the controversial retention payment package for 21 senior executives, which had been due to go out this month, would remain on hold until the new year.
The bonuses were put on pause earlier this year after the Guardian revealed the chair of the company wrongly told parliament that creditors had “insisted” on the payments.
Sir Adrian Montague admitted he “may have misspoken” after he incorrectly told the environment, food and rural affairs select committee that the lenders had insisted that “very substantial” bonuses of up to 50% of salary should be paid to executives to help retain important staff.
