Member

However, we are very aware that water companies need to attract investment so, as outlined in Ofwat’s consultation, the circumstances under which performance- related pay bans are being proposed represent very serious failures by a company. I reassure the noble Baroness, Lady Bakewell of Hardington Mandeville, that this includes instances of criminal convictions, credit ratings falling below investment grade and Ofwat’s proposed metric for bonuses to be prohibited if a company has had a serious category 1 or 2 pollution incident in the preceding calendar year. These are the type of circumstances in which it would be highly inappropriate for a bonus to be awarded. I hope that answers her question.