UK water firm gives US$1.35 million payout to finance boss despite massive debt

Thames Water has handed a delayed £1 million (US$1.35 million) “golden handshake” payment to its chief financial officer and agreed controversial retention payouts to top bosses despite its battle to secure its financial future.

The stricken supplier, which is sinking under a debt pile of more than £20 billion, disclosed in a letter to the Environmental, Food and Rural Affairs Committee that it had made the so-called signing-on payment to Steve Buck at the end of July from an emergency lending facility from creditors.

In the letter sent last week to committee chairman Alistair Carmichael, Thames Water chairman Adrian Montague said the payment was a “necessary incentive” to Buck in joining the utility when he was appointed in April 2025, but that it had been deferred when wider retention payments were put on hold.

It is understood the payment was made after legal advice.

Thames Water also said in the letter that it had agreed individual settlements over what it calls retention payments for a dozen top bosses, plus two who have now left the business, despite a furore late last year over them.