Anglian Water has handed its chief executive Mark Thurston £1.3mn in retention and other payments, a move that appears to sidestep the regulator’s powers to clamp down on bonuses. He received £593,000 in base pay and benefits, plus a £1.27mn package that includes a £500,000 retention payment, taking his total to £1.86mn.

The government introduced new rules last year that clamp down on excessive pay for poor performance. Anglian said its parent company is not regulated by Ofwat and that the extra payments are in line with the rules. The company noted that its regulated business—AWS—has not paid bonuses, and that the medium‑term alignment plan and retention awards are not tied to performance conditions and are permitted.

Other utilities are also rewarding leaders with large sums. United Utilities’ chief Louise Beardmore earned an £830,000 bonus and a total of £2.5mn, while Severn Trent has doubled the long‑term reward for James Jesic to up to £3.1mn. These payouts come as customers face a 44 per cent rise in average bills, and regulators warn they will intervene if breaches are found.

Consumers and the Consumer Council for Water say they would be incensed if companies circumvent bonus rules. Anglian’s shareholders funded the retention schemes to keep leadership continuity, but the arrangements are not paid for by the company or customers.