Thames Water executives to receive bonuses from an emergency loan of £ 3 million

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Thames Water’s senior executives will receive a lavish “retention incentives” as part of a 3 million pound emergency loan agreed by the utility that seeks to avoid renationalization.

Some executives are on the “50 percent salary line; very substantial bonuses” as part of Agreed loan with creditors Including U.S. financing Elliott Management and Silver Point Capital, Thames Water President Sir Adrian Montague, told parliamentarians on Tuesday.

Montague stated it Thames Water He had to continue to pay bonuses to prevent rival companies from “choosing” their best employees.

“We have a bonus scheme to protect our most precious resource, which is the management team,” Montgue told the matches environmental selection committee.

The bonuses will be paid in three sections in addition to the salaries and annual bonuses, the deputies were told.

Montgue, a veteran of the city of London, admitted that it was an unusual agreement: “This is the first time I found this, I have done some restructuring in my time,” he said. “We need this team to stay.”

Chris Weston, a former British gas executive, was appointed CEO of Thames Water in December 2023 and was criticized for having taken a £ 195,000 bonus During his first three months at work. It is in a total package of payments up to £ 2.3 million a year.

The audience of the selected committee occurs when Thames Water, the largest water utility in the United Kingdom, seeks to uphold renationalization in the Government Special Administration Scheme. The company, which serves about a quarter of the country’s population, struggles under the weight of its 8 million pound debts mountain and is in exclusive discussions with the firm of private capital. KKR to take on the business.

The creditor loan of £ 3 million, which was challenged in court On the part of the holders of good rivals, it includes an interest rate of 9.75 percent, plus the fees. But Montague argued that the company had to agree on the agreement that the financial crisis of “hair rise” Water meant that the largest water use in the United Kingdom had only five weeks of cash in the last year.

“Thames of the last year has come very close running out of money completely. There were times in the last year when we had five weeks of liquidity: with a corporation of £ 20 million with a five -week liquidity, sincerely his hair is increasing, “said Members on Tuesday.

Montague defended the agreement to give KKR the exclusive right to an agreement, although Thames Water received five more offers. “KKR’s offer was very much and the best, technically, financially, with regard to the commitment to provide equity, they were ahead,” he said.

He added that he hoped that much of the council will be reduced if the 4 million pound KKR agreement is confirmed: “When you have a change of control of a large company like this, you have to wait for huge changes to the Council, it may be that new capital owners want some people to stay, but the hope is that most will be reduced.”