Thames Water Gave Finance Boss a £1m Signing-On Fee Amid Debt Crisis

Thames Water has paid its finance chief Steve Buck a £1 million signing-on fee, despite the company facing a mountain of debt and the prospect of temporary nationalisation. The payment, first reported by Sky News, was disclosed in a letter from Thames Water chairman Sir Adrian Montague to MPs on the Commons Environment, Food and Rural Affairs Committee.

The Payment and Its Justification

Buck joined the company in April 2025, but it is understood the seven-figure payment was not made until last July, after the company sought legal advice about its contractual obligations. Sir Adrian defended the payment, saying he understood customers would regard large payouts to senior leaders as unjust, but argued they were necessary to prevent key talent from leaving. The letter stated that most senior team members were recruited recently to fix the company's problems and were not responsible for creating them.

Debt Crisis and Nationalisation Risk

Thames Water is the UK's largest water company, supplying around 16 million customers. It has been grappling with debts of nearly £20 billion and has been seeking fresh investment to stabilise its finances. The government has acknowledged the possibility of a special administration — a form of temporary nationalisation — if the company fails to secure new funding. Customers and environmental campaigners have been furious about repeated sewage spills into rivers and the sea attributed to the company.

Political Reaction

Opposition MPs called the payment 'outrageous' and 'tone-deaf', given that Thames Water customers face some of the highest bills in England. A government spokesperson said it expected companies to exercise restraint in executive pay while seeking public support. The row adds further pressure on the government to tighten regulations around executive pay in regulated utilities.