Large bonus for Thames Water boss
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Thames Water boss Martin Baggs has been awarded a bonus nearly equal to his annual salary at a time when the company is imposing a hosepipe ban on its 8.8 million customers.
Mr Baggs, whose salary is £425,000, was awarded a bonus of £418,359 for the year to 31 March 2012, according to Thames Water's annual report.
The firm brought in water restrictions in April after two dry winters.
The GMB union described the payment as "an outrage".
"This is a classic case of reward for failure," said the union's national officer Gary Smith.
Mr Baggs, who was appointed in March 2010, could also receive hundreds of thousands of pounds worth of shares over the next four years under a long-term incentive plan.
Thames Water would not confirm the size of Mr Baggs' bonus last year. But it said that the bonuses paid to its top three executives combined had fallen 22%.
The company's chief operating officer, Stephen Shine, who left his job on 31 March 2012, was also awarded a bonus of £305,156, on top of his £310,000 salary.
Thames, the UK's largest water and wastewater services provider, serves customers in London and the Thames Valley area.
The company has said said it no longer expects to keep the hosepipe ban through to the autumn.
This follows record rainfall across the UK in April and more in May and June.
Although its measure of customer satisfaction "deteriorated" over the year, the company said it had invested £1bn in its network and plants, and its leakage rates had improved.
However, last week a Thames Water pipe burst, causing flooding at Stratford underground station and resulting in severe disruption on the Central Line.