Shareholders at United Utilities have approved a new remuneration policy for the company’s executive directors despite vocal criticism from campaigners and some institutional advisers. The vote, taken at the firm’s annual general meeting on Friday, saw around 75.8% of votes cast in favour and 24.2% against.
What was approved and why it matters
The policy includes timebound retention arrangements described by the company as a way to secure senior leadership while it delivers major infrastructure investment. Under the plans, chief executive Louise Beardmore is in line for a so-called shares allowance of £435,000 a year, to be paid in instalments next August and February, with the requirement that those shares are held for at least two years.
The vote follows intense scrutiny since Ofwat, the water industry regulator, denied Ms Beardmore a bonus for 2024-25 after a reservoir incident in December 2024 that resulted in significant fish deaths. The episode prompted questions about how pay aligns with performance and environmental outcomes.
“None of the remuneration paid to our executive directors is paid for by customers,”
The company reiterated this line after the AGM and emphasised the scale of investment it says it is undertaking across its region.
Numbers at a glance
| Item | Figure |
|---|---|
| Votes in favour | 75.8% |
| Votes against | 24.2% |
| Chief executive shares allowance | £435,000 per year |
| Previously denied bonus (2024-25) | £417,000 (denied by Ofwat) |
| Bonus reported for 2025-26 | £830,000 (awarded, according to the annual report) |
Reaction and wider debate
Critics argue that the remuneration changes risk insulating pay from performance. The shareholder advisory group Institutional Shareholder Services recommended investors reject the proposals, suggesting they weaken the link between pay and company outcomes.
Liberal Democrat environment spokesman Tim Farron described the wider issue as industry-wide attempts to avoid accountability as ministers consider measures to curb executive bonuses in utilities. The company said the retained policy is necessary to ensure it has leaders capable of delivering a large capital programme and supporting thousands of jobs.
- Investor support: the package secured a clear majority at the AGM.
- Regulatory context: Ofwat prevented an earlier bonus following an environmental incident.
- Company justification: United Utilities cited major planned infrastructure investment and the need for leadership continuity.
The decision is likely to keep scrutiny on how water companies’ pay practices are judged by regulators, investors and the public, particularly where environmental incidents have occurred. United Utilities said it will continue to consult with shareholders as it implements the policy.
