Thames Water boss quits after giving up bonus over sewage spills - but still rakes in £1.5m

Thames Water chief executive Sarah Bently has stepped down with immediate effect after announcing last month that she would forgo her bonuses in the wake of public outrage over the amount of sewage spills.

The company said that Ms Bentley would leave the board on Tuesday (27 June) but continue to support her interim replacement until a new full-time boss can be found.

In May she promised she would give up her bonus for the 2022-23 financial year but still managed to double her pay, raking in £1.5 million.

At the time Gary Carter, a national officer at the GMB union, said that Ms Bentley’s plan to give up the bonus was “nothing more than a flimsy PR stunt”. He said that the UK water industry is “in a complete mess” and “to see those responsible for this carnage pocket a king’s ransom is particularly galling”.

According to the Guardian, based on sums from Thames Water’s reporting Annual Report 2021-2022, her remuneration will be increased this year due to one-off payments.

The paper said that Thames Water reports show that during the last financial year, even without the waived bonus, she will have received about £1.5 million, including her £750,000 salary and a £90,000 cash pension payment. She also receives a car, travel allowance and other benefits such as healthcare cover.

The paper said she will get a larger bonus than last year when she received £496,000. Her pay packet this year will be part of an incentive package used to lure her from rival Severn Trent as she joined Thames Water in 2020 after nearly six years at the rival water firm.

Thames Water reports show she received £548,780 last July as a “final buyout payment” to compensate for share awards she forfeited at Severn Trent. She also received £178,000 relating to Thames Water’s performance in the first two years in her role.

In a statement to NationalWorld, Thames Water said Bentley will “forego any performance-related bonuses for 2023 financial year”.

A spokesperson added: “As disclosed at the time and in last year’s annual report, she received a final compensation payment in July 2022 for shares in Severn Trent she relinquished on joining Thames Water. This was a personal decision.

“Ms Bentley felt it would not have been right to take a performance-related bonus given the significant headwinds the company faced last year, which impacted performance.”

Ms Bentley also confirmed she will forgo any bonus or LTIP payments for the financial year 2022-2023 as she said “it simply doesn’t feel right to take my bonus this year.”

On Tuesday chairman Ian Marchant said: “I want to thank Sarah for everything she has done since joining the company in 2020, building a first class executive team and leading the first phase of the turnaround of the company. On behalf of everyone at Thames, the board wishes her every success for the future.”

Ms Bentley said “it has been an honour to take on such a significant challenge” and “the foundations of the turnaround that we have laid position the company for future success to improve service for customers and environmental performance.”