Shareholders of United Utilities are being advised to oppose a new executive pay proposal that would increase chief executive Louise Beardmore’s annual remuneration despite recent controversies surrounding the company. The water firm, which has faced criticism over elevated sewage levels linked to public health concerns, plans to award Beardmore an additional £435,000 in shares each year. This comes after she was previously denied a £417,000 bonus in connection with the scandal.

The company’s annual general meeting, scheduled for July 17, will include a vote on the proposed executive pay policy. However, the advisory group Institutional Shareholder Services (ISS) has recommended that investors reject the plan. ISS expressed concern that the proposal significantly raises Beardmore’s guaranteed compensation, reducing the linkage between pay and company performance. According to the advisory firm, the changes would effectively shield executive remuneration from accountability related to results on environmental compliance and operational standards.

United Utilities has been under scrutiny due to reports of unsafe sewage discharge levels, which have attracted public and regulatory rebuke. The decision to cut the CEO’s bonus last year was part of the company’s response to these operational failings. Opponents of the new pay structure argue that increasing the fixed portion of Beardmore’s compensation undermines efforts to hold leadership financially responsible for the company’s environmental impact.

The vote by shareholders will determine whether the additional share allowance is approved, potentially marking a significant shift in executive compensation at United Utilities amid ongoing demands for greater corporate accountability.