Water company bosses' pay rises have sparked fury despite a government bonus ban, with total executive compensation increasing by 1.5% to £25.3 million over the past year. The Guardian revealed that chief executives and chief financial officers at 14 water companies serving England and Wales received higher packages through salary increases and loopholes, even as public anger over soaring bills and sewage pollution intensifies.
Executive Pay Details: Who Got What?
Mark Thurston of Anglian Water received £1.9 million, including a £500,000 "retention payment" despite the bonus ban. Louise Beardmore, chief executive of United Utilities, saw the biggest package at £2.5 million—£1.1 million more than the previous year. The overall rise in reported pay packets comes as Thames Water, the country's largest water company, teeters on the brink of insolvency and about 23 million people face hosepipe bans with drought status looming.
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Critics argue that water companies are finding ways to reward executives excessively while customers bear the burden of rising bills and environmental damage. The bonus ban, introduced in 2025, was meant to curb such practices, but the use of retention payments and base salary hikes has undermined its intent.
Pressure on Andy Burnham to Act
The revelations add to pressure on Greater Manchester Mayor Andy Burnham, who has called for "more public control" over the water industry. Burnham has suggested moving Thames Water into temporary government ownership after years of financial mismanagement. Green Party MP Adrian Ramsay stated: "The astronomical sums paid to water company executives are a perfect illustration of everything that is wrong with treating this essential public resource as a private commodity."
Ramsay urged Burnham to conclude that water should be brought back into public ownership, ensuring that money raised goes back into the system rather than into shareholders' pockets and excessive executive pay.
Comparison of Top Water Executive Pay (2024-2025)
| Company | CEO | Total Pay (2024) | Total Pay (2025) | Change |
|---|---|---|---|---|
| United Utilities | Louise Beardmore | £1.4m | £2.5m | +79% |
| Anglian Water | Mark Thurston | £1.7m | £1.9m | +12% |
| All 14 Companies | Combined CEOs & CFOs | £24.9m | £25.3m | +1.5% |
Key Takeaways
- Total executive pay rose 1.5% despite a government bonus ban in 2025.
- Retention payments and salary rises are being used as loopholes.
- Thames Water faces insolvency, affecting millions of customers.
- Public pressure mounts for government ownership or stricter regulation.
- Sewage pollution and rising bills continue to erode public trust.
FAQ
Why did water company bosses get pay rises despite the bonus ban?
Executives received higher base salaries and retention payments, which are not classified as bonuses. These loopholes allowed total compensation to increase by 1.5% overall.
What is the bonus ban on water company bosses?
The UK government introduced a ban on bonuses for water company executives in 2025 in response to public outrage over sewage pollution and rising bills. However, the ban does not cover retention payments or salary increases.
Could water companies be taken into public ownership?
Andy Burnham has suggested moving Thames Water into temporary government ownership. The Green Party advocates full public ownership to redirect profits toward infrastructure and environmental improvements instead of executive pay.
The ongoing controversy over water company pay highlights the disconnect between executive rewards and public expectations. As bills rise and pollution continues, calls for greater accountability and structural reform are likely to intensify.