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Water Industry Bonus Bans to Tighten After Regulators Warn of Loopholes
UK regulators are speeding up a review of water company executive pay rules amid concerns that firms are using alternative payments to bypass a ban on bonuses.
The UK water industry regulator, Ofwat, has announced it will accelerate a review into executive compensation rules. This move follows concerns that water companies are undermining an established bonus ban by issuing large fixed retention payments and increasing base salaries instead. Firms such as Anglian Water faced specific criticism for retention payments offered to executives despite the regulatory restrictions. Nine water companies across England and Wales were previously barred from paying bonuses for the 2025-26 financial year due to issues including environmental pollution, but scrutiny continues as total executive pay remains high.
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