Thames Water risks fresh storm over new finance chief’s massive payday

The utility’s finance chief has received a controversial £1m signing-on fee amid the company’s financial struggles.

The payment to Steve Buck, who joined in April 2025, was reportedly funded through an emergency borrowing facility.

This facility was provided by a group of lenders advocating for a government-backed rescue plan for the utility company.

The £1million payment was made 15 months after Mr Buck started his role and was based on legal advice Thames Water received regarding its obligations.

Sources revealed that the payment details were disclosed by the company’s chairman, Sir Adrian Montague, to MPs on the environment, food, and rural affairs select committee.

Thames Water has also made settlements over retention payments with 14 other executives, including two who have left the company.

These settlements reportedly involve smaller sums than initially planned, spread over a longer period.

The payment to Mr Buck, who previously worked at Pennon Group and Anglian Water, was part of a package designed to attract him to Thames Water as it attempted to avoid a government takeover.

A source stated that although the payment was deferred with Mr Buck’s consent, Thames Water’s board ultimately decided it had to honour it due to his contractual rights.

A broader retention payments scheme set up last year to prevent Thames Water executives from leaving did not make the agreed payments at the end of last year or on June 30.

This was due to a decision by directors to pause the programme amidst a political backlash.

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The company recently revealed that chief executive Chris Weston’s total pay package exceeded £1million last year. (Image: House of Commons/UK Parliament/PA Wire)

Sir Adrian’s letter reportedly acknowledged that customers might find it unfair that senior managers are receiving large sums while service standards have not improved.

The letter, which was also sent to Ofwat and the Department for the Environment, Food and Rural Affairs (DEFRA), is expected to lead to renewed calls from campaigners for Thames Water’s immediate nationalisation.

The company recently revealed that chief executive Chris Weston’s total pay package exceeded £1million last year.

However, he does not participate in any of Thames Water’s bonus schemes.

Sir Adrian reportedly informed MPs that Thames Water had been struggling to recruit and retain senior staff due to the ongoing crisis, which has left the company’s future uncertain for the past three years.

Sir Adrian’s letter comes amidst a broader debate over executive pay in the water industry, with several companies offering allowances to executives to bypass bonus restrictions set by Ofwat.

The regulator stated that it would closely monitor retention payments not linked to performance, with a review expected to take place next year.

The likelihood of another pay dispute at the largest company in the industry presents a challenge for Angela Eagle, appointed as environment secretary last month.

Thames Water’s fate remains one of the most urgent issues she faces, with a revised rescue proposal from creditors anticipated in the coming weeks.