Section 35A: Remuneration and standards of performance, Water Industry Act 1991

This section applies to any company holding an appointment under Chapter 1 of this Part.

As soon as reasonably practicable after the end of each financial year of the company it must make a statement to the Authority—

disclosing whether or not remuneration has been paid or become due during that financial year to the directors of the company as a result of arrangements falling within subsection (3) below; and

where such remuneration has been paid or become due, describing the arrangements and the remuneration.

Arrangements fall within this subsection if they are arrangements for linking the remuneration of the directors of the company to standards of performance in connection with the carrying out by the company of the functions of a relevant undertaker.

A description under subsection (2)(b) above must include in particular—

a statement of when the arrangements were made;

a description of the standards of performance in question;

an explanation of the means by which the standards of performance are assessed; and

an explanation of how the remuneration was calculated.

The statement required by subsection (2) above must also state—

whether or not there are in force in respect of the financial year during which the statement is made arrangements falling within subsection (3) above; or

if not, whether the company intends that such arrangements will be in force at some time during that financial year,

and if there are, or it is intended that there will be, such arrangements in force the statement must describe those arrangements.

A description under subsection (5) above must—

include in particular the matters listed in subsection (4)(a), (b) and (c) above; and

where the arrangements described are different from any arrangements described under subsection (2)(b) above, state the likely effect of those differences on the remuneration of each director of the company.

The statement required by subsection (2) above must be made to the Authority in such manner as may be required by the Authority.

The statement required by subsection (2) above—

must be published by the company making the statement in such manner as it reasonably considers will secure adequate publicity for it; and

may be published by the Authority in such manner as it may consider appropriate.

The duty of a company under this section applies in respect of any person who has at any time been a director of the company.

In this section—

Any requirement imposed by this section shall be treated as a statutory requirement enforceable under section 18 above by the Authority.

Section 35A: Remuneration and standards of performance

Discussed in

About this text