Administrators of Thames Water will meet inside days to determine whether or not to proceed with greater than £2m of retention funds to senior executives amid fierce scrutiny from MPs.
Sky Information has learnt that the crisis-hit water utility’s remuneration committee will maintain talks subsequent week after taking authorized recommendation on whether or not to press forward with the second instalment of a multimillion pound payout to 21 of its most senior managers.
In whole, the newest payouts equate to £2.46m, the identical as a earlier tranche of cash handed out earlier this yr.
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A Whitehall supply stated on Tuesday that Sir Adrian Montague, Thames Water’s chairman, had written to Alistair Carmichael, chair of the setting, meals and rural affairs choose committee to tell him of the remuneration committee’s deliberations.
Mr Carmichael wrote to Sir Adrian final week demanding to know by 1 December whether or not the cash can be handed out.
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Chris Weston, Thames Water’s chief government, is already the topic of a bonus ‘ban’ imposed by the regulator, Ofwat, beneath new guidelines stopping payouts at water firms that are failing to fulfill environmental, monetary resilience or client requirements.
Mr Weston is just not a member of the retention fee scheme.
The controversial retention funds at Thames Water are as a consequence of be selected with the corporate remaining within the grip of a survival battle.
Its largest group of collectors stay locked in talks with Ofwat, different regulators and the federal government in regards to the phrases of a potential deal that may write off billions of kilos of the corporate’s debt.
They might additionally inject billions of kilos in contemporary fairness, in return for an adjustment in Ofwat’s method to future monetary penalties.
Thames Water declined to remark.
