Water company executives could face losing their bonuses under proposals being considered in the UK. Environment Secretary Stephen Barclay proposed the plan, which he said would encourage bosses to take responsibility for environmental damage caused by their firms. Regulator Ofwat will hold a public consultation later this year on potential sanctions for serious breaches. Restrictions on executive bonuses are supported by campaigners and opposition parties, who argue that water companies’ performances have been poor. Last year, executives at five of the 11 sewage companies took bonuses, although at six others, they were forfeited in response to pressure.
Proposals being considered in the UK could prevent water company executives from receiving bonuses if their firms cause environmental damage. Environment Secretary Stephen Barclay has proposed the measure to encourage bosses to take greater responsibility for the consequences of illegal sewage spills polluting rivers and beaches. Regulator Ofwat will conduct a consultation later in the year to determine which actions should result in stripped bonuses and whether the sanctions should apply. Labour’s shadow environment secretary and the Liberal Democrats both said that they have been calling for restrictions on bonuses for some time.
Proposals suggesting that water company bosses could be stripped of their bonuses have been put forward in the UK. Environment Secretary Stephen Barclay has argued that executives should be held accountable for the environmental damage caused by their businesses. Campaigners and opposition parties have welcomed the suggestion with the latter saying that they have been calling for sanctions on bonuses for a while. Senior executives from just five of the 11 sewage companies in the UK received bonuses last year, however, six out of the eleven forfeited them due to campaigning pressure. The consultation is expected to take place later this year, during which the regulator, Ofwat, will determine potential sanctions for serious breaches.
A proposal is being considered by the UK’s water regulator, Ofwat, which could strip bonuses from water company executives if their companies cause environmental damage. This comes as campaigners and opposition groups have called for restrictions on these bonuses, citing the poor performance of water companies. Stephen Barclay, the Environment Secretary, is proposing the plan in light of illegal sewage spills that have polluted beaches and rivers. The consultation is expected to take place later this year with Ofwat determining potential sanctions for serious breaches. In response to the proposal, Labour’s shadow environment secretary and the Liberal Democrats have claimed that they have long been calling for such restrictions
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