Overview

• Thames Water has dropped plans to award senior executives bonuses worth up to 50% of their salaries, following criticism from the UK government and regulators.
• The bonuses, linked to a £3 billion emergency loan secured earlier this year, were initially justified as necessary to retain key staff during financial restructuring.
• Chairman Sir Adrian Montague admitted he 'may have misspoken' when claiming creditors insisted on the bonuses, later clarifying they were agreed upon but not demanded by lenders.
• Environment Secretary Steve Reed confirmed the withdrawal of the bonus plan and emphasized upcoming Ofwat powers to block executive rewards in failing water companies.
• Thames Water continues to face financial instability, with over £18 billion in debt and ongoing discussions with private investors to secure long-term stability.