Thames Water paid its finance chief a \u00a31m signing-on fee in July as the company struggles with a mountain of debt and faces temporary nationalisation.<\/p>\n
Steve Buck joined the company in April 2025 but it is understood the seven-figure payment was not made until last month after the company had taken legal advice over its contractual obligations.<\/p>\n
The existence of the payment, first reported by Sky News,, external was revealed in a letter from the Thames Water chairman to MPs on the Commons Environment, Food and Rural Affairs Committee.<\/p>\n
In the letter,, external Sir Adrian Montague said he understood customers would see large payments to senior leaders as "unjust" but argued they were necessary to stop staff leaving.<\/p>\n
The letter said: "The majority of the team were brought in recently to fix the problems the company faces and are not responsible for causing those problems.<\/p>\n
"These talented and experienced individuals have opportunities for roles outside Thames Water and, in many cases, have been actively approached by other companies.<\/p>\n
"These roles would be less in the public gaze, less difficult and more remunerative."<\/p>\n
Sir Adrian described the payment to Buck as a "necessary incentive" and said the money had come from emergency funding provided by Thames Water's lenders.<\/p>\n
He said the company is facing recruitment and retention difficulties and warned the problem would "persist" if it was nationalised or put into special administration.<\/p>\n
The utility company owes roughly \u00a320bn and has been working with creditors and government officials to find a way forward.<\/p>\n
Failure to reach a deal could lead to Thames Water being forced into a "special administration regime", a form of temporary nationalisation intended to keep the business operating until a viable solution can be found.<\/p>\n
This would see government-appointed officials temporarily running the company \u2013 including funding its operations and upgrading infrastructure as well as dealing with any outstanding debts following a restructuring of the business.<\/p>\n
If the company was subsequently sold to a private buyer, the government would be able to recoup some taxpayer cash.<\/p>\n
Prime Minister Andy Burnham has previously said he would like to see "greater public control" of key water and energy utilities.<\/p>\n
In the past year, Thames Water boss Chris Weston saw his pay increase 14% to \u00a31.63m while other directors received bonuses totalling \u00a34.1m.<\/p>\n