The UK prohibits six water businesses to pay bosses to bosses | Company Business News

(Bloomberg) – The UK has banned six water businesses from paying bonuses to senior managers to try to force companies to do more to tackle pollution. The regulator of what has the power to stop “unjustified” payments for poor environmental and customer performance as part of new legislation coming into effect on Friday, a statement says. Bosses at Thames Water, Yorkshire Water, Anglian Water, Wessex Water, United Utilities and Southern Water are not allowed to receive bonuses with immediate effect, the Department of Environment, Food and Rural Affairs said. The sector faces widespread public anger over sewage leaks in rivers and lakes throughout Britain. Decades of under -investment mean that leaks are getting worse and that the government and or what is under pressure to act. To stop the payouts of bonuses, it is intended to address the public perception that company bosses are rewarded, even if a firm of sewage pumps into the waterways illegally. “Companies that meet the standards of or what standards will still be eligible to pay drivers bonuses – a powerful incentive for them to deliver immediate environmental improvements, better customer outcomes and improve financial resilience,” Defra said in a statement. The ban has been dated to apply for any bonuses regarding the financial year from April 2024, but there are some possible loopholes that are open. It is still possible for businesses to increase executive wages to bypass the rules. The ban will not apply to the awards of the executive Share, which in theory can mean that they still receive dividends. While or wasting no time using its new powers, the sector should still be attractive to investors. Companies have been approved to spend more than £ 104bn ($ 141 billion) cutting down sewage drop off, and several of them need new shares to finance these investments. According to the government, the investment will be fenced for new pipes and treatment works, not shareholders. The largest provider of Thames Water – who has gained the most important provider of the country – Thames Water – this week is the most important company that had a big blow this week after the infrastructure investment giant KKR & Co. drew from a rescue agreement, which left the utility with his senior creditors. Public anger was further fueled in April by raising bills of as much as 47%, while water companies have granted more than £ 112m to bonuses and incentives over the past decade, according to government figures. More change comes for the industry. Former Deputy Governor Jon Cunliffe, the former Deputy Governor of Bank of England, who promises to be the biggest renovation, is reviewing the sector. Earlier this week, the interim findings of his review said that the regulator should take a more supervisory role in enabling it to be more reactive and possibly intervene earlier when issues arise. Or what is currently very dependent on ‘comparability’ – or to judge water companies against each other to assess efficiency and justify customer accounts. If a company pays a bonus while banned, the company can order to get the money back. More stories like these are available on Bloomberg.com © 2025 Bloomberg LP