Thames Water appoints new CFO as recapitalisation plan begins

(Sharecast News) - Struggling utility group Thames Water has appointed the former finance boss of Pennon and Anglian Water as its new chief financial officer, less than a week after the abrupt resignation of its CFO and the selection of a "preferred partner" to help the company avoid nationalisation. Steve Buck, who also worked for Centrica for 11 years as well as a stint at Thames Water between 2005 and 2007, is to rejoin the company on 7 April.

His appointment follows last Friday's surprise departure of finance chief Alastair Cochran, who handed in his resignation amid a cash crunch for the company, as it struggles with a near-£20bn debt pile and looming financial obligations.

Then on Monday, Thames Water announced it had selected US investment firm KKR to take a stake in the business in an attempt to avoid nationalisation amid eye-watering bill increases for its customers.

KKR, which is already a minority shareholder in Northumbrian Water, was among several companies interested in partnering with Thames. Five others expressed an interest, according to the company.

Thames Water chief executive Chris Weston said Buck's appointment comes at "a pivotal moment for the business".

"He will play a crucial role as we seek to place Thames on a more secure financial foundation, continue to implement our turnaround plan and focus on a full recapitalisation of the business," Weston said.

Buck, who will receive an annual salary of £500,000 in his new role and a bonus of up to 156%, said: "I am looking forward to returning to Thames Water.

"Working with the team I will be focused on delivering the company's turnaround plan, and deliver the recapitalisation of the business, in order to put the business on a firmer financial platform so that we can improve performance and ensure we meet the expectations of our customers, colleagues and wider stakeholders."