Top Thames Water executives are set to pocket nearly £800,000 in bonuses this year as the utilities firm prepares to cut 650 jobs.
Thames Water yesterday announced that 350 employees could be made redundant and a further 300 roles may be phased out through an employment freeze and the termination of contractor roles.
In a statement the company said it was putting the jobs at risk as it “focused on maximising every penny”.
According to Thames Water’s annual report published last week, finance chief Brandon Rennet and strategy and regulation director Nick Fincham will receive a total bonus of £794,000.
Rennet will be paid a bonus of £448,000, which, including base salary, benefits and pension payments, brings his total remuneration for the year to £985,000.
Fincham will take home an additional £346,000. Fincham’s total remuneration for 2018/19 amounts to £720,000.
The proposed redundancies will affect employees working in support functions and at management level across London and the Thames Valley.
“This is clearly very difficult news for employees directly affected and we will do as much as we can to support them, including providing practical help to find new roles,” Thames Water said in a statement yesterday.
“We remain totally focused on managing our cost base. The money we spend belongs to our customers and investors – and we are committed to delivering on our commitments to them and all of our stakeholders.”
In its latest results for the 12 months to the end of March the company reported that profit before tax had more than halved to £51.6m from £137.4m the previous year and announced it would cancel dividend payments.
Thames Water declined to comment on the bonus payments.