Thames Water Faces Backlash Over £1M Signing Bonus for Finance Chief Amidst Debt Crisis
Critics demand nationalization as Britain's largest water company offers substantial payment to new finance boss while grappling with £18.5 billion debt.
Thames Water is facing renewed calls for nationalization following the revelation that it awarded its new finance chief a £1 million signing-on fee as the company struggles with escalating debt. The payment to Steve Buck, who joined in April 2025, was made on the advice of the company's board and came from emergency funding provided by lenders who are working on a rescue plan.
This development has intensified criticism from environmental campaigners and public ownership advocates who argue the payment demonstrates a disregard for customers and the environment. Feargal Sharkey, an environmentalist and campaigner, described the situation as "water industry depravity" and questioned when the government would intervene. Cat Hobbs, director of We Own It, a campaign group, called the situation "beyond a joke" and urged immediate government action, stating that public ownership could drastically reduce the company's debt.
Thames Water, which has been reportedly on the brink of collapse since 2024, has accumulated £18.5 billion in debt. The company recently flagged "material uncertainty" regarding its ability to secure further liquidity. As part of its efforts to avoid full nationalization, the company is reportedly considering offering the government a "golden share."
The payment to Buck was disclosed in a letter from Thames Water's chairman, Sir Adrian Montague, to the Environment, Food and Rural Affairs select committee. The signing-on package was intended to persuade Buck, who previously held finance roles at Pennon Group and Anglian Water, to join the company as it navigated potential special administration.
This incident follows news last month that chief executive Chris Weston's total pay package exceeded £1 million, including a bonus paid despite the company missing environmental and customer service targets. Thames Water stated this bonus was deferred from a previous year, predating a ban on bonuses for companies failing to meet regulatory standards by Ofwat.