United Utilities has faced criticism over its proposal to grant Chief Executive Louise Beardmore an annual share allowance worth £435,000, a move some campaigners argue is disconnected from public concerns. Beardmore, who took the helm of the FTSE 100 water company in 2023, would be required to hold the shares for two years, with no attached performance conditions. The allowance will be subject to a shareholder vote at the company’s upcoming annual general meeting.
The company states the share award is intended to support management retention amid high turnover rates across the water industry. United Utilities, headquartered in Warrington, Cheshire, serves around three million households across northwest England, including parts of Cheshire, Manchester, Merseyside, Lancashire, Cumbria, and areas up to the Scottish border.
Tim Farron, the Liberal Democrat environment spokesman, criticized the proposal as “another incredibly out of touch move from a water company,” highlighting ongoing concerns about executive pay in a sector under intense regulatory scrutiny. The industry regulator has recently restricted bonuses as a consequence for serious pollution incidents and inadequate environmental performance.
Beardmore herself was denied a bonus of £417,000 for the 2024-25 financial year after an incident where thousands of fish died after becoming trapped in a valve during a routine safety inspection. However, she received an annual bonus of £830,000 in the latest financial year, during which the company did not register any serious pollution events.
Farron argued the share allowance exposes weaknesses in the government’s existing bonuses ban, suggesting that water firms continue to circumvent accountability instead of addressing critical infrastructure issues and environmental impact. Matt Staniek, founder of the campaign group Save Windermere, acknowledged that water companies, including United Utilities, have begun making stronger public commitments to reduce sewage pollution but urged that such promises be backed by tangible accountability.
In response, a United Utilities spokesperson affirmed the company’s dedication to competitive, market-based pay, noting that Beardmore and Finance Director Phil Aspin have historically received compensation below that of their predecessors, industry peers, and FTSE 100 benchmarks. They added that all executive pay and bonuses are funded entirely by shareholders, with no effect on customer bills.
The company also highlighted progress in reducing environmental harms, reporting a 22 percent decrease in sewage spills last year across the northwest and a 27 percent reduction in the total duration of these events, which they quantified as 123,000 fewer hours of spill time.