Southern Water has come under fire after revealing its chief executive’s pay package nearly doubled to £1.4m, despite a ban on bonuses following the company’s poor performance and environmental violations.
The controversial pay rise for CEO Lawrence Gosden comes as the utility firm continues to face scrutiny over sewage spills, service disruptions, and a £90m fine for illegal wastewater discharges.
Public Backlash Over Executive Rewards
Consumer groups and environmental campaigners have slammed the decision, accusing Southern Water of rewarding failure while customers endure rising bills and subpar services.
"This is a slap in the face to every household struggling with water bills," said Emma Clancy, CEO of the Consumer Council for Water. "At a time when trust in water companies is at rock bottom, this sends entirely the wrong message."
Defending the Pay Hike
Southern Water justified the increase, stating Gosden’s base salary remained unchanged at £425,000, with the additional £1m coming from long-term incentive plans and pension contributions.
A company spokesperson said: "Executive remuneration is carefully structured to reflect both individual performance and the challenges of transforming our business."
Regulatory Scrutiny Intensifies
The pay revelation comes as water regulator Ofwat prepares to announce its final decisions on company business plans, with Southern Water’s proposals already deemed "inadequate" in draft assessments.
With public anger growing and regulatory pressure mounting, the water industry faces increasing calls for reform of executive pay structures in the sector.
