Key facts
- Wessex Water CEO Ruth Jefferson received a 14% base salary increase, from £590,000 to £670,000.
- The pay rise was significantly higher than the 3.5% increase given to other Wessex Water employees.
- Wessex Water is expected to be subject to a government ban on executive bonuses due to pollution.
- Anglian Water provided its CEO with a £500,000 "retention payment" despite a similar bonus ban.
- Union officials criticized water company executives for increasing pay despite environmental failures.
Wessex Water has awarded its chief executive, Ruth Jefferson, a 14% base salary increase, raising her pay from £590,000 to £670,000, despite the company facing a ban on executive bonuses due to sewage spills. This increase significantly outpaced the 3.5% raise given to other employees and places her pay at 18 times that of the company's median worker.
The water industry has faced intense public criticism over sewage discharges into rivers and seas, leading the government to implement a bonus ban for companies with serious pollution or failing financial tests, effective from 2025. Wessex Water anticipates it will be affected by this ban, particularly concerning environmental and operational metrics.
Jefferson's total remuneration for the year, including pension and other benefits, reached £791,000. In a similar instance, Anglian Water provided its chief executive, Mark Thurston, with a £500,000 "retention payment," which the parent company stated was permissible as it was not performance-related and funded by shareholders.
Union officials, such as Gary Carter from the GMB, have expressed dismay, stating that executives continue to find ways to increase their pay despite company failures and public dissatisfaction. Wessex Water defended the salary adjustment, explaining it was a planned review to align remuneration with market benchmarks after an initial appointment below comparable organizations.
Further scrutiny has fallen on Yorkshire Water, whose chief executive, Nicola Shaw, received £660,000 from its parent company. The regulator, Ofwat, has announced it will require companies to disclose such payments from group entities to improve transparency and rebuild trust.