Ofwat requests additional pay information from Yorkshire Water over bonus ban
Regulator Ofwat has written to Yorkshire Water asking for additional information about pay decisions after the firm was hit with a bonus ban by the Government.
This came after the firm agreed to pay Ofwat £40m for environmental and consumer failures.
These payments did not appear on Yorkshire Water’s annual accounts as executive pay does not have to be declared in Jersey, where Kelda Holdings is registered.
A spokesperson said this was for “investor engagement, financial oversight, and management” and maintained it was not performance related, and therefore does not breach the ban.
The Yorkshire Post understands these letters had been planned ahead of the revelations about Ms Shaw’s undisclosed payments.
An Ofwat spokesperson said: “We are currently reviewing water companies' compliance with the performance related pay prohibition rule.
“As part of this assessment, we have written to several companies to request more information on the remuneration decisions they have set out in their annual accounts.
“Where we find evidence that a company has breached the rule, we have powers to direct companies to take remedial actions which, if not complied with, can result in companies facing enforcement action – including financial penalties.”
An Environment Department (Defra) spokesperson added: “Undeserved bonuses for water company bosses have now been banned as part of the government’s plan to clean up our rivers, lakes and seas for good.
“The Government will leave no stone unturned in clawing back any payments if found to be against the rules and Ofwat stands ready to take enforcement action.
“Any instances of companies trying to circumvent the new rules are completely unacceptable.”