AWG owns Anglia Water

The company - which supplies water in Norfolk, Suffolk, Essex, Cambridgeshire, Northamptonshire and Bedfordshire - raises the issue in its annual report.

The report shows that ex-chief executive Chris Mellor, who is in line for a pay-off of almost �380,000 after departing from the firm, also received a special bonus of �150,000 for his role in the restructuring.

The 18-month process dramatically altered the shape of the Huntingdon-based company with the original Anglian Water business ringfenced as a separate part of the group.

Their reasoning at the time was entirely appropriate but the environment has now moved on AWG spokesperson

The process was funded by raising �3.5bn of debt but also enabled the group to pay �501m back to shareholders.

The biggest winner from the one-off bonuses was finance director Elliott Mannis who received �200,000 - taking his total package for the year to �585,000.

In its report, the group's remuneration committee said that payments similar to the �475,000 split between four executive directors in July last year, would not be made in future.

'Forcus directors' attention'

The report said: "In accordance with best practice, the committee has now determined that special or transaction bonuses would not now be paid in the future."

An AWG spokesman said on Tuesday that the change of policy reflected growing dissatisfaction in the City with special bonuses but said the original decision had been made to "focus the directors' attention" on the restructuring.

He said: "Their reasoning at the time was entirely appropriate but the environment has now moved on."

While the payout relating to Mr Mellor's loss of office had not been agreed by the time the annual report went to the printers, AWG announced on Thursday that he was in line to receive almost �380,000.

On top of an initial payment of �142,575, Mr Mellor will receive up to nine monthly payments of �26,302 as well as other benefits including private healthcare and the use of a company car.