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

Two of Britain’s biggest water companies face a grilling from shareholders this week – with one accused of ‘retreating to its bunker’ after banning investors from accessing its annual meeting online.

Bosses at United Utilities, England’s most polluting water company, are in line for tough questioning over their dire record on storm overflow spills into rivers and lakes.

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

More controversially, it has also barred shareholders who cannot attend the meeting in person from logging on to the event remotely.

Water view: Thirlmere Reservoir in Cumbria falls under United Utilities

Also in the firing line this week is Pennon, owner of South West Water, whose chief executive Susan Davy recently gave up her £450,000 bonus after the firm was fined for illegal sewage dumping.

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

The water industry has spent months under scrutiny and was rocked further last month when Thames Water plunged into crisis.

Thames Water’s investors were forced to throw it a £750 million lifeline to stay afloat as it struggles with debts of £14 billion. The company, however, has admitted ‘significantly more’ will be required in future. 

United Utilities, meanwhile, was criticised by ShareSoc, which represents individual investors, which said it was ‘disappointed’ by the decision to deny access.

‘In light of the well-publicised problems in the water industry, we would expect that shareholders will have many questions for the company,’ a ShareSoc spokesman added. 

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

‘Just when United Utilities should be encouraging greater shareholder participation, it retreats to its bunker in Warrington. Is this a strategy to avoid scrutiny from shareholders who are dismayed by their appalling record on sewage dumping and a fall in its environmental performance rating?’

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

Last month Marks & Spencer was forced to review plans to hold entirely 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 spokesman said there was usually a good turnout at in-person AGMs and the meeting would be open to the media.’

This post first appeared on Dailymail.co.uk