Thames Water is facing fresh scrutiny after revelations it paid £1m to a chief financial officer appointed a year ago.

The beleaguered firm is struggling under almost £20bn in debt, with cash running out to see the firm through beyond the end of this year and widespread concern about which direction is best for the future of the business.

The company hired Steve Buck in April of 2025 as CFO, who previously worked at water utility companies Pennon Group and Anglian Water. The £1m fee paid to Mr Buck was a delayed signing-on fee, as first reported by Sky News.

Among the other 14 executives to have seen retention payments agreed, two are with workers no longer at the firm and others are for smaller amounts than originally agreed or on more favourable terms.

The Independent understands the water firm took legal council prior to payments being agreed and made, in line with fulfilling its current financial obligations, while the Environment, Food and Rural Affairs Committee (Efra) were informed last week about the payment to Mr Buck.

Mr Buck’s joining fee was agreed to be deferred when he joined, but his contractual rights ultimately dictated he was to be paid the full sum.

Thames Water also paid chief executive Chris Weston over £1m last year, as shown in their own financial records released last month.

One of the chief stated policy priorities of Efra is reforming the water sector, including working with the government on a reworked regulatory framework.

New prime minister Andy Burnham has previously suggested that Thames Water could be nationalised, but current creditors instead offered a turnaround plan which includes adding several billion in a cashflow injection, no dividends paid to shareholders for the duration of the turnaround plan and an eventual intention to take the company public once more.

Some MPs were outspoken against this proposed deal, with then-environment secretary Emma Reynolds writing to the industry regulator to share concerns that the suggested package does not do enough to protect the environment or consumers. The government rejected the deal in June. Angela Eagle has since been appointed to that position, with Ms Reynolds moving to become chief secretary to the Treasury.

A spokesperson for London and Valley Water, a collection of the largest creditors, said in response the group was “confident that our plan is by far the fastest route to improve outcomes for customers and the environment, without any government funding or any cost to taxpayers.”

There has also been talk of a so-called golden share of the company being handed to the government to keep Thames Water private, which would relinquish some veto powers for major decisions. Regulator Ofwat would need to review any further changes to proposals.

Economic consultancy firm Frontier Economics recently undertook a calculation on behalf of L&VW and concluded it would cost the government -and by extension, the British public - £140bn to nationalise the nation’s water companies.