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(Sharecast News) - Thames Water directors are reportedly expected to meet within the coming days to discuss whether to pay nearly 2.5m in retention payments to 21 senior executives.
According to Sky News on Tuesday, the remuneration committee at the struggling utility company - which is also subject to an Ofwat-imposed bonus ban on firms that fail to meet performance targets - has sought legal advice on if it can proceed with a second instalment of a payout to senior managers.
Thames Water had paid out 2.46m to its most senior directors earlier this year, despite intense backlash from MPs as the company continues to grapple with creditors and the government about its eye-watering debt pile and ongoing operational issues.
Ofwat's new bonus rule blocked a total of 4m in potential bonuses from six water companies in its first year of operation, the regulator announced last month, after a "variety of performance failures, mostly involving category 1 pollution incidents".
Directors from companies that do not meet certain financial resilience, environmental and consumer standards targets will not be eligible for their annual bonus and other relevant performance-related pay.
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