United Utilities chief executive Louise Beardmore is set to receive an annual share allowance of £435,000, a sum that will be paid irrespective of the company's performance. This comes after Ms. Beardmore forfeited a £417,000 bonus for the 2024/25 financial year.
The bonus was revoked after an incident involving a reservoir release valve, which led to the death of thousands of fish and was classified as a serious breach by the water regulator Ofwat. The company was subsequently fined £60,000.
If approved by shareholders on July 17, Ms. Beardmore, 51, would receive this share allowance annually until 2030. This new package is intended to offset potential future reductions to her annual bonus. In the 2025/26 financial year, Ms. Beardmore's total earnings, including a bonus, amounted to £2.5 million.
Finance director Phil Aspin is also slated to receive a similar share allowance of £280,000 per year. If no sanctions affect their bonuses, the shares will still be awarded but must be held for a period of two years.
A spokesperson for United Utilities defended the remuneration plan, stating that such allowances are necessary to attract and retain executive talent in a competitive market. The company's annual report notes the need to "recognize that we are competing to retain and attract talent in an extremely challenging and competitive marketplace, with other industries seeking the same key skills we need, but without the increasingly complex regulatory and political landscape we are operating within."
United Utilities serves approximately seven million homes in northwestern England and has committed £13 billion to facility upgrades by 2030. Ofwat's authority to withhold bonuses from water company executives was enhanced last year following public outcry over rising water rates, service outages, and pollution incidents, leading to the Water (Special Measures) Act 2025.
Ofwat has stated its requirement for "full transparency on all remuneration, performance-related or otherwise, and companies must clearly explain their decisions." The regulator added that it is reviewing remuneration decisions and will take action if rules are breached.