Thames Water boss Sarah Bentley quits after giving up bonus

Thames Water CEO Sarah Bentley Steps Down From £1.6m Job, Foregoing Bonus Amid Backlash Over Sewage Leaks

Rewritten: This blog segment has been authored by a reporter from “This Is Money”.

Last modified: 7:06 PM British Summer Time, 27th June 2023

Sarah Bentley, who was the CEO of Thames Water, has stepped down from her position.

Sarah Bentley, the chief executive officer of Thames Water who's currently facing criticism, has resigned from her post just a few weeks after being compelled to surrender her bonus.

In 2020, Ms Bentley took charge as the chief executive of Thames Water. Since then, she has led the company while it has received criticism for the issue of sewage in rivers.

Back in May, she announced her decision to relinquish her bonus due to the company's struggling environmental and customer performance.

Bentley received a salary of £1.6 million, even though she refused to take her bonus in response to public anger about the high number of leaks and sewage spills in the industry.

Last month, she expressed her intention to waive her bonus for the 2022-23 fiscal year. This decision puts her in the same league as the executives of companies like Pennon Group and Yorkshire Water, who also relinquished their bonuses. Such moves have been reinforced by scathing criticism of the water sector.

Thames Water verified that their yearly statement would reveal that Bentley was given a total of £1.6 million. This package includes her basic salary of £750,000, an extra £90,000 for her pension and £32,000 for travel, medical expenses and other benefits.

The water industry regulator approved speeding up investments of approximately £2.2 billion today to decrease river pollution and leaks.

According to Ofwat, it has given the green light to 33 investment plans put forward by water firms. These initiatives aim to enhance water quality and introduce smart metering systems.

According to the proposals, businesses are expected to allocate approximately £1.7 billion to prevent the release of wastewater into locations throughout the nation and minimize the frequency of these incidents.

In the meantime, an amount of £400 million has been allocated to reinforce water resilience plans, which involves the implementation of 462,000 intelligent measuring devices.

According to Ofwat, these initiatives will aid in enhancing the ability to withstand drought, lessening contamination, and safeguarding the environments of flora and fauna.

Thames Water will have a new leader as those plans are implemented, as Ms Bentley will no longer be in charge.

Alastair Cochran, who holds the position of Chief Financial Officer, has decided to become the temporary co-leader. He also opted out of receiving his bonus at this point in time.

Starting now, he is going to lead Thames Water alongside Cathryn Ross, who was previously the CEO of Ofwat and recently joined the company.

Tim Farron, who is responsible for the environment in the Liberal Democrat party, stated that the company, which has been plagued with scandals, must now face a turning point.

Thames Water is in total chaos and it is high time government officials intervened to overhaul the company comprehensively.

The era of prioritizing profit over the environment needs to come to a close.

Thames Water chose to keep Bentley's bonus amount undisclosed as she refused to accept it. However, in the previous year, she received a payment of £496,000 based on her performance.

The head of the company, Ian Marchant, expressed his gratitude towards Sarah for her contributions since her arrival in 2020. He acknowledged her leadership skills in putting together a remarkable team of executives and successfully initiating the first stage of the company's transformation.

The board of Thames extends their best wishes for a successful future to her on behalf of all members.

Ms Bentley expressed her gratitude for the opportunity to face a significant challenge and serve the devoted and inspiring colleagues of Thames Water. She considers it an honor.

The groundwork we've established for our company's turnaround paves the way for future triumph, allowing us to enhance customer service while also bettering our environmental impact.

I hope that all the people who are a part of the transformation get the optimum outcomes.

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