From next month regulator Ofwat plans to use new powers to stop executives of water companies being rewarded despite poor performance on cleaning up pollution.
David Black's pay is set to rise to between £180,000 and £185,000. He is currently on annual leave as water companies are launching appeals against the regulator's price rulings.
Thames Water has been handed an £18.2million fine after regulator Ofwat used powers to crack down on firms paying 'unjustified' dividends for the first time.
Despite the average £31 a year increase figure announced by the regulator Ofwat today, UK households will face a heavy average hike of £86 or 20 per cent in the next year, excluding inflation.