Water firm exec pay tops £10 million for first time amid sewage scandal

8 Nov 2023

EMBARGO: Immediate release

Base pay and pension payouts for executives in England & Wales water industries rise to new high
£9.7million spent on bonuses last year despite a handful of CEOs giving up their bonus due to public outrage. Two firms increase their bonus pool.
Liberal Democrats brand industry “the gravy train where sewage and money flows freely”

New analysis of Company House records has revealed the country’s water industry paid out a staggering £10 million in executive salaries last year, the highest on record.

The Liberal Democrats’ annual Water Firm Payout Tracker, has recorded salaries and pension payouts for senior executives to be at an all time high since the tracker began its analysis three years ago.

Water firms have paid out an additional £876,000 in base pay for executives in 2022/2023 compared to 2021/2022. The ten firms also found a staggering £1.6 million last year for pensions of 26 executives, a rise year-on-year.

Five CEOs of water firms turned down their bonuses last year following a campaign by the Liberal Democrats. However, despite this, an eye-watering £9.7 million was paid out in bonuses to executives.

The worst offending water firm for sewage discharges into rivers and coastlines is also guilty of paying out the most to executives. United Utilities, who discharged the last amount of sewage last year according to Environment Agency data, also paid out the most in base pay for executives last year (£1.6million).

Severn Trent, who discharged sewage 45,000 times last year, paid £3.5 million in bonuses to two executives last year.

Two firms, Anglian Water and Northumbrian Water, increased the amount they paid out on bonuses year-on-year.

Anglian Water, who have missed their Ofwat pollution targets, paid their two executives £60,000 more compared to last year.

The Liberal Democrats have called for a ban on all CEO bonuses within the water industry, as well as the firms to be reformed as “public public companies”. The reforms would put an end to profit before the environment and ensure their boards including environmental experts.

Liberal Democrat Environment spokesperson Tim Farron MP said:

“This country’s water industry has become a gravy train where sewage and money flows freely. This is a scandal and happening on this government’s watch.

“When will Conservative Ministers finally get tough on these polluting and profiteering firms? These execs are stuffing their pockets whilst our rivers and lakes are destroyed. Frankly, the whole thing stinks.

“These bonuses need to be banned as long as the sewage scandal continues. Bonuses should be a reward for success, not committing environmental crimes.

“It's time to rip up this broken industry, starting with reforming company boards and putting an end to profit before the environment.Conservative Ministers will ignore the public outrage at their own peril.”

ENDS

NOTES TO EDITORS

First reported in The Times

Full analysis of Company House records dating back to 2019/2020