4

Mandate greater Ofwat oversight and clearer criteria for water company senior bonuses

Conclusion
The Independent Water Commission should consider what other reforms are necessary to ensure that the right people are put into senior positions and the appropriate bonuses are paid to them. This should include greater oversight or approval from Ofwat before appointments are made and bonuses are paid; clearer statutory expectations on the criteria for bonuses, making sure that they are awarded only for exceptional performance; clearer reporting to show how the needs of the environment and customers have been prioritised; better connections between bonuses and the incentives under the regulatory system; and greater customer involvement in establishing what an appropriate bonus scheme looks like. (Recommendation, Paragraph 13)
Timeline
Recommendation age 1.0 yr
Report published 16 Jun 2025