Exclusive: Ministers to act after last year’s legislation ‘outwitted’ by failing firms paying millions to executives
The government is to close loopholes which allow bosses of failing water companies to continue to receive large bonuses despite a ban passed last year, it can be revealed.
Bosses of companies that illegally dumped sewage into England’s rivers and seas and presided over water shortages which left thousands of people in misery have still been paid millions in bonuses despite the ban.
The previous environment secretary Steve Reed attempted to ban failing water companies from paying bonuses to chief executives and chief financial officers. However, the legislation passed in the Water (Special Measures) Act last year only referred to “performance-related” bonuses from specific regulated companies.
MPs have said the loopholes allowed companies to get around the bonus ban by labelling payments differently or paying bosses through linked companies.
