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Committee publication · Correspondence · 9 December 2025

Correspondence from Thames Water relating to its Management Retention Plan, dated 1 December 2025

From: Environment, Food and Rural Affairs Committee

Inquiry: Reforming the water sector

Summary

Thames Water's Chairman Sir Adrian Montague responds to the EFRA Committee's 25 November letter regarding the company's Management Retention Plan (MRP). He confirms no decisions have been made since July evidence and commits to keeping the Committee informed. The Remuneration Committee is reviewing legal advice and Ofwat's November guidelines; a Board decision is expected after meetings scheduled for 8 December 2025.

Key findings

  • No decisions on the Management Retention Plan have been made since Thames Water's 15 July 2025 evidence session
  • The Remuneration Committee is gathering further advice including legal counsel on the MRP
  • Ofwat's Performance Related Executive Pay Assessment (published 5 November 2025) is being reviewed
  • A Board recommendation is expected following Remuneration Committee and Board meetings in the week commencing 8 December 2025
  • Thames Water commits to updating the Committee as soon as practicable after the Board receives the Remuneration Committee's recommendation

Tone

Procedural

Topics

water-utilitiesexecutive-paycorporate-governance

Key actors

Sir Adrian Montague, CBE (Thames Water Chairman), Rt Hon Alistair Carmichael MP (EFRA Committee Chair), Thames Water Utilities Limited, Thames Water Board, Thames Water Remuneration Committee, Ofwat

Notable line

“… no decisions have been made regarding the Management Retention Plan (MRP) since our evidence to the Committee on 15 th July”

Key Quotes

“I would like to assure you that no decisions have been made regarding the Management Retention Plan (MRP) since our evidence to the Committee on 15 th July”
— Sir Adrian Montague, CBE · responding to Committee inquiry about MRP status
“The Board is cognisant of the request to keep you appraised of changes to the status of the MRP and of course we will act on this request.”
— Sir Adrian Montague, CBE · committing to update the Committee
“You have my assurance that I will respond to you as soon as practicable after the Board has received a recommendation from the Remuneration Committee.”
— Sir Adrian Montague, CBE · on timing of further update to Committee
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Source · parliament.uk record ↗