United Utilities ‘retreating to its bunker’ amid shareholder AGM ban

Two of Britain’s largest water companies are being reprimanded by shareholders this week – one accused of ‘retreating its bunker’ after denying investors access to its annual meeting online.

Bosses at United Utilities, England’s most polluting water company, are in line for tough questioning over their abysmal record of storm flooding in rivers and lakes.

But the company – led by CEO Louise Beardmore since March – has unexpectedly moved its annual meeting from Manchester to its headquarters in a business park in Warrington, more than 20 miles away.

More controversially, it has also prevented shareholders who cannot attend the meeting in person from logging into the event remotely.

Also in the line of fire this week is Pennon, owner of South West Water, whose CEO Susan Davy recently handed in her £450,000 bonus after the company was fined for illegally dumping waste water.

Shareholder advisory group Pirc is urging investors to vote against Pennon’s pay policy because bonuses are “excessive.”

The water industry has been under scrutiny for months and was further shaken last month when Thames Water plunged into crisis.

Thames Water’s investors were forced to give it a £750 million lifeline to stay afloat as it struggles with £14 billion in debt. However, the company has admitted that it will need “significantly more” in the future.

United Utilities, meanwhile, was criticized by ShareSoc, which represents individual investors, which said it was “disappointed” by the decision to deny entry.

“In light of the much-publicized issues in the water industry, we would expect shareholders to have many questions for the company,” a ShareSoc spokesperson added.

Jamie Woodward, a water industry expert and professor of physical geography at the University of Manchester, said: ‘This is a huge step backwards for an industry that has pledged to be more open and transparent.

Just when United Utilities should be encouraging greater shareholder participation, it is retreating to its Warrington bunker. Is this a strategy to avoid the scrutiny of shareholders appalled by their appalling record of wastewater dumping and a drop in environmental performance ratings?’

United – which is worth £6.5 billion – is the latest company to be caught up in a row on how annual meetings are held.

Last month, Marks & Spencer had to revise plans to hold all-digital AGMs after a backlash from some shareholders.

They called on M&S to hold ‘hybrid’ meetings where they can attend online or in person.

United Utilities chairman Sir David Higgins defended the move, saying ‘very few shareholders’ had used virtual links during the Covid pandemic.

A United Utilities spokesperson said there was usually a good turnout at in-person AGMs and the meeting would be open to the media.