Thames Water provided its finance chief Steve Buck with a £1 million signing-on fee in July, according to a letter from the company’s chairman to Members of Parliament. Buck had joined the utility in April 2025, though the payment was delayed until the following month pending legal review of contractual obligations.
Chairman Sir Adrian Montague defended the payment in his correspondence, stating it was a necessary measure to retain experienced staff who have alternative employment opportunities. He characterized the signing-on fee as an incentive funded through emergency financing from the company’s lenders, arguing that talented executives could secure positions elsewhere that would be less scrutinized, demanding, and potentially more lucrative. Montague cautioned that recruitment and retention difficulties would worsen if the company entered temporary nationalisation or special administration.
The payment drew criticism from government officials and lawmakers. The Prime Minister’s spokesman called the decision unacceptable for a poor-performing water company, noting that authorities have banned bonuses for executives at polluting utilities. Alistair Carmichael, chair of the Environment Committee, argued resources should prioritize service improvements rather than senior executive compensation. An Ofwat executive director similarly raised concerns about public trust being undermined by inadequately explained high payments to leadership.
Thames Water carries approximately £20 billion in debt and has been negotiating with creditors and government to develop a resolution. The company reported having sufficient cash reserves only through year-end, intensifying pressure on policymakers to determine its future. The utility serves 16 million residents across London and the Thames Valley and has faced persistent criticism regarding sewage discharge failures and leaks, resulting in a record £122.7 million fine from regulators the previous year. Potential outcomes under consideration include private sector rescue arrangements proposed by lenders or temporary government administration if negotiations fail.
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