Executive bonuses banned at six UK water companies over pollution

A sewage attraction works for London supplier Thames Water, 1 of the firms deed by the bonus ban. Photo: Ben STANSALL / AFP
Source: AFP

Six UK h2o companies were banned Friday from paying bonuses to elder executives, which the authorities said would beryllium inappropriate fixed their nonaccomplishment to cleanable up their monolithic sewage discharges.

The caller measures, whose targets see the country's biggest supplier, financially troubled Thames Water, prohibit the companies from paying bonuses "to h2o bosses that oversee mediocre biology and lawsuit outcomes", the authorities announced successful a statement.

Suffering from underinvestment successful a sewer strategy that dates mostly backmost to the Victorian era, UK h2o companies, privatised since 1989, person been nether occurrence for respective years owed to the discharge of important quantities of sewage into rivers and the sea.

Despite this, "water companies person awarded implicit £112 cardinal ($152 million) successful bonuses and incentives implicit the past decade," the authorities noted.

These executives "should lone get bonuses if they've performed well, surely not if they've failed to tackle h2o pollution", said situation curate Steve Reed.

The Labour government, which came to powerfulness successful July, has promised to betterment a assemblage "in crisis" and has already legislated to toughen penalties for h2o institution bosses who neglect to comply with the law.

Water regulator Ofwat past week imposed a grounds good of £123 cardinal connected London supplier Thames Water, which serves 16 cardinal customers, for repeated sewage spills.

Some £18.2 cardinal of the fines related to "unjustified" payouts of dividends.

The steadfast is seeking a backstage purchaser to debar a authorities bailout.

US concern money KKR pulled retired of a imaginable woody connected Tuesday.

Yorkshire Water, Anglian Water, Wessex Water, United Utilities and Southern Water were besides deed with the bonus ban.

Britain's nationalist spending watchdog warned successful April that the h2o assemblage arsenic a full volition request to put £290 cardinal implicit the adjacent 25 years to conscionable biology and proviso challenges.

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Source: AFP