Thames Water under fire for £1m bonus paid to finance chief

A campaign group has accused Thames Water of

A campaign group has accused Thames Water of "taking the mickey" after it emerged that the struggling utility handed its finance director a £1m golden hello, even as the company fights to stave off nationalisation.

The payment to Steve Buck, who joined as chief financial officer, was disclosed in a letter from chairman Adrian Montague to members of the environment, food and rural affairs select committee, according to a report by Sky News. The revelation has intensified criticism of Britain's largest water supplier, which is grappling with a massive debt pile and the threat of being brought under state control.

Buck's signing-on fee, paid last month, comes at a time when Thames Water is under mounting pressure to stabilise its finances and restore public confidence. The company has been locked in negotiations with regulators and investors over its future, with the possibility of a temporary renationalisation looming large if it fails to secure new funding.

The campaign group, which has long called for

The campaign group, which has long called for the water industry to be brought into public ownership, said the payout was an insult to customers who face rising bills while the company struggles. It argued that the move highlighted a culture of excessive pay at the top of the firm, even as ordinary households bear the brunt of its troubles.

Labour's Greater Manchester mayor, Andy Burnham, has also weighed in, reiterating his view that the company should be nationalised. He described the payment as further evidence that the current model is broken and that private ownership has failed to deliver for either customers or the environment.

Thames Water has defended the fee, saying it was necessary to secure the services of a highly qualified executive to lead its financial turnaround. The company insists that it is taking steps to address its challenges and that Buck's appointment is part of a broader effort to put the business on a more stable footing.

However, the controversy is unlikely to die down

However, the controversy is unlikely to die down, with MPs expected to scrutinise the payment in upcoming hearings. The select committee, which has been investigating the water sector, is likely to demand further details about the terms of Buck's contract and the rationale behind the bonus.