Thames Water gave finance boss a £1m signing-on fee

Thames Water has confirmed that its finance chief, Steve Buck, received a £1 million signing-on fee in July 2026, even as the company struggles with mounting debt and risks temporary nationalisation.

Buck joined in April 2025, but the payment was delayed until last month after legal advice was sought. The disclosure came in a letter from Thames Water chairman Sir Adrian Montague to MPs on the Commons Environment, Food and Rural Affairs Committee.

Sir Adrian acknowledged that customers may view such payments as “unjust”, but argued they were necessary to retain senior staff:

• “The majority of the team were brought in recently to fix the problems the company faces and are not responsible for causing those problems.”
• “These talented and experienced individuals have opportunities elsewhere, often with roles that are less public, less difficult, and more lucrative.”

He described the payment as a “necessary incentive”, funded by emergency loans from Thames Water’s lenders.

Government & Regulatory Response

The Prime Minister’s spokesman said:
“It’s unacceptable that one of the worst-performing water companies is handing out huge payments to its executives when it should be focusing on improving performance and rebuilding public trust.”

Under rules introduced last year, water companies failing to meet standards automatically lose the right to award certain bonuses. Regulators at Ofwat also warned that excessive payments damage public trust.

Political Reaction

Alistair Carmichael, Lib Dem MP and chair of the Environment Committee, stated:
“Money should be going into improving services, not remunerating already well-paid senior executives.”

Helen Campbell of Ofwat added:
“Excessive payments made under the rationale of retaining leaders must be transparent and justified.”

Financial Struggles

• Thames Water owes £20bn and is negotiating with creditors and government officials.
• Failure to reach a deal could trigger special administration, meaning temporary nationalisation.
• The company supplies water to 16 million people across London and the Thames Valley.

CEO Chris Weston defended competitive pay, saying:
“If we’re not prepared to pay market rates, capable people won’t join or stay.”

Despite this, Thames Water has faced repeated criticism for sewage discharges, leaks, and was fined £122.7m last year by Ofwat.

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Reference: BBC News – Thames Water finance boss £1m signing-on fee (2026)