United Utilities has been accused of 'corporate greed in plain sight' after unveiling proposals to grant its chief executive a shares 'allowance' worth £435,000 a year. The water company's latest annual report reveals that chief executive Louise Beardmore is set to receive the first instalment under the so-called shares allowance in August, with a second payment due in February next year. According to United Utilities, she would be required to retain the shares for a minimum of two years.
Shareholder vote and backlash
The proposals – which are set to be put to a shareholder vote at the group's annual general meeting on July 17 – have drawn fierce criticism from campaigners. The backlash comes after Ms Beardmore was stripped of a £417,000 annual bonus for 2024-25 by regulator Ofwat, following an incident at a reservoir in December 2024 that resulted in the deaths of thousands of fish.
James Wallace, chief executive of River Action, said: 'Calling a £435,000 bonus an "allowance" fools nobody. This is corporate greed in plain sight.' He went on to say: 'The era of obscene executive payouts must end, with real personal sanctions, including custodial sentences for the worst offenders.'
Executive pay details
United Utilities' annual report also discloses that Ms Beardmore received an annual bonus of £830,000 for the most recent 2025-26 financial year, alongside long-term incentive awards valued at £712,000. Her total remuneration package surged by 44% to £2.5 million in 2025-26, up from £1.4 million in 2024-25, after the reservoir incident resulted in her bonus being cancelled and long-term share awards were also reduced to £567,000.
Liberal Democrat environment spokesman Tim Farron branded the share allowances plan 'another incredibly out-of-touch move from a water company'. He said: 'This proves that the Government's bonuses ban isn't worth the paper it's written on, with the water industry never failing to find ways to evade accountability, rather than cleaning up our water and fixing the crumbling infrastructure.'
Company justification
United Utilities said the proposed share 'allowances' for Ms Beardmore and chief financial officer Phil Aspin – who stands to receive £280,000 a year under the award – will see the maximum potential annual bonuses reduced to 100% of annual salary, down from 130%, while long-term share awards will be trimmed from up to 200% of salary to 175%. The company stated the move was made to 'retain and ensure the stability of the executive team and provide a competitive overall remuneration opportunity'.
The group's annual report also revealed that Ms Beardmore and Mr Aspin's annual salaries were increased by a fifth to £870,000 and £560,000 respectively last July. In the report, United Utilities' remuneration committee chairwoman Kath Cates said: 'The committee has thought very carefully about how to construct a fair and balanced remuneration policy that will allow us to continue to retain and incentivise our experienced leadership team, and attract new talent.' She added: 'We recognise that the proposals are somewhat unusual in the context of UK-market norms but believe that the unique circumstances which our sector faces (including competing stakeholder priorities and an ever-evolving regulatory environment) warrant adoption of a tailored approach.'
Customer funding assurance
However, the company moved to allay concerns over executive pay by emphasising that director remuneration for 2025-26 would not be funded by customers. 'Recognising that executive remuneration in the water sector remains a contentious matter... the board has decided that for 2025-26 none of the pay received by the executive directors will be paid for by customers. This goes beyond our previous commitment that customers would not pay for performance-related pay outcomes.'
