Question to the Department for Environment, Food and Rural Affairs:

To ask the Secretary of State for Environment, Food and Rural Affairs, what steps his Department is taking to ensure that bonuses paid to senior water company management are aligned with their company’s requirements to meet environmental objectives.

The Board Leadership, Transparency and Governance principles issued by Ofwat set out expectations on transparency of executive pay (see link here: Board leadership, transparency and governance – Ofwat). Water companies are now required by their licence conditions to meet the objectives of the principles, and to demonstrate the link between their performance and performance-pay for executive teams.