THAMES Water’s finance boss has reportedly scooped a £1million payout, while the company teeters on the brink of collapse.
Steve Buck, who joined the company last year, was given the payment at the end of July, according to Jattvibe.
It’s understood the payment was drawn from an emergency borrowing pot made available to Thames Water by lenders who want the Government to back a rescue plan for the company.
The payment was part of a signing-on package to persuade Mr Buck to join Thames Water.
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It’s thought the payment was made after Thames Water took legal advice over its obligations in Mr Buck’s contract.
Reports suggest Thames Water had been struggling to recruit and retain senior staff during the current crisis.
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The water company is locked in a high-stakes battle over its future, as it pushes for a creditor-led rescue plan while the Government threatens to nationalise it.
If the firm is nationalised, that would take it into public hands.
Meanwhile the London & Valley Water consortium of lenders has proposed a £10billion deal to prevent Thames Water from entering administration.
The company has warned it could run out of cash by November, after being handed a huge £122.7million fine last year for breaching rules on sewage pills and shareholder payouts.
The payment to Mr Buck was reportedly disclosed in a letter sent last week by Thames Water chairman Sir Adrian Montague to MPs on the environment, food and rural affairs select committee.
The company also revealed it has reached settlements over retention payments to 14 other executives, including two who have now left the company.
Many of these are understood to involve Thames Water paying smaller amounts than previously planned under the retention scheme.
Regulator Ofwat has said it will pay close attention to retention payments that are not linked to performance.
