Ofwat on exec pay: Toothless regulator needs to ban bonuses

EMBARGO: Immediate release

Responding to the latest announcement by the water industry regulator Ofwat, which rules out banning executive bonuses despite the sewage scandal, Liberal Democrat Environment spokesperson Tim Farron MP said: 

"The British public will be reading this and screaming at regulators to just get on with banning these insulting bonuses.

"Every penny spent on exec bonuses is less money being used to upgrade creaking infrastructure.  Enough is enough. Ban all water firm exec bonuses and ensure funds go straight into fixing leaking pipes.

"Bonuses should be a reward for success, not environmental vandalism.

"It is frankly a scandal that the Conservative government is just sitting on their hands. They are allowing a toothless regulator to let water firms get away with it. With not a single mention of sewage in the King's Speech this week, it is obvious the Conservative party do not care about this issue."

ENDS

Notes to Editor:

Ofwat announcement:
https://twitter.com/Ofwat/status/1722186786779099277

The Liberal Democrats have been calling for a ban on water firm exec bonuses during the sewage scandal. This week LiberalDemocrat analysis found exec pay in the industry reached £10million for the first time. Please find full analysis here and toplines below:

• Base pay and pension payouts for executives in England & Wales water industries rise to new high 

• £9.7million spent on bonuses last year despite a handful of CEOs giving up their bonus due to public outrage. Two firms increase their bonus pool. 

• Liberal Democrats brand industry “the gravy train where sewage and money flows freely”

New analysis of Company House records has revealed the country’s water industry paid out a staggering £10 million in executive salaries last year, the highest on record.