Water bosses get multi-million pound payments that will NOT be hit by regulator's power to ban bonuses

Published: 18:51, 18 July 2026 | Updated: 18:51, 18 July 2026 Executives at water companies will get multi-million pound payments despite the regulator's new power to ban bonuses.  Northumbrian Water will pay its chief executive £1.5million as a 'retention payment' over the next five years.  While water regulator Ofwat can now ban bonuses for bosses at companies that break pollution rules, these payments will not be subject to its powers.  It is understood that Northumbrian Water's long-standing boss Heidi Mottram will be paid £300,000 in five instalments.  Northumbrian Water, a Hong Kong-owned company, expected that any bonus headed for Mottram would be banned.  It said it needed the incentive because Mottram was 'a highly marketable individual working in a sector where remuneration is exceptionally highly regulated and often subject to media scrutiny'.  Earlier in July, Northumbrian Water was forced to pay £500,000 for two sewage discharges into North East waterways.  Louise Beardmore of United Utilities, who provides water for the North West, is also receiving a £435,000 'allowance' that is not subject to the bonus ban.  Heidi Mottram, chief executive of Northumbrian Water, will be paid £1.5million as a 'retention payment' over the next five years Anglian Water is also paying its chief executive Mark Thurston, the former boss of HS2, £1.3million in awards.  The company said: 'The decision was taken to ensure the stability of leadership.'  Pennon's chief executive saw her annual bonus of £270,000 reinstated after it was blocked when its South West Water unit poisoned more than 500 customers with parasite-infected tap water.  It brings the total Susan Davy has earned while in charge at Pennon, which owns South West Water, to £5.6million, higher than previously reported.  In June, South West Water was fined £1.9million for letting cryptosporidium from animal faeces infect drinking water supplied to more than 16,000 homes in Brixham, Devon, in May 2024 when Ms Davy was still boss.  Watchdog Ofwat initially banned any bonus to her and a £190,000 payment to Pennon finance director Laura Flowerdew. But the ban was reversed and the payouts were released 'following further guidance' from Ofwat, Pennon said in its annual report last week. The bonus prohibition came into force a year ago amid public anger over sewage dumping, coupled with soaring household water bills. Anglian Water is also paying its chief executive Mark Thurston, the former boss of HS2, £1.3million in awards It allows Ofwat to block performance-related awards to the most senior directors if their water firm is found guilty of the worst pollution incidents. Separately, chief executive of Wessex Water Ruth Jefferson received a 14 per cent increase to her salary to £670,000, according to The Times. Lawrence Gosden, chief executive of Southern Water, received a 3.5 per cent pay rise to £536,000. He also receives £140,000 for benefits such as a housing allowance, a car and private medical insurance.  Thames Water gave its chief executive a 9.5 per cent pay rise to take Chris Weston's total pay to £1.2million.  Northumbrian Water was contacted for comment.