The average pay for water company chief executives across England and Wales rose to £1.1 million in the 2024-25 financial year, despite growing public anger over sewage pollution and a government ban on executive bonuses at several major suppliers.
An analysis of annual reports from 14 water companies reveals total CEO remuneration climbed to £15 million, up from £13.8 million the previous year – a 5% increase. The rise comes amid fierce criticism of the sector’s environmental failures, soaring customer bills, and persistent water infrastructure issues.
Water firms have faced mounting scrutiny for the widespread discharge of untreated sewage into rivers and coastal waters, with pressure from campaigners and politicians intensifying after the industry regulator Ofwat approved bill hikes in April.
While the government introduced rules to restrict excessive payouts, including a 2023 requirement that executive bonuses be funded by shareholders rather than customer payments, enforcement appears mixed. In June, new regulations gave Ofwat the power to block bonuses for companies involved in serious environmental harm.
Affinity Water’s CEO Keith Haslett received the largest pay rise, doubling his earnings to £1.6 million – an increase of £844,000. At Portsmouth Water, chief executive Bob Taylor also saw his pay double to £754,000.
Six major providers – Thames Water, Anglian Water, Southern Water, United Utilities, Wessex Water, and Yorkshire Water – were subject to bonus bans in 2024-25. Among these, total CEO pay fell by 8% to £5.5 million. The sharpest decline came at Thames Water, where CEO Chris Weston received £1 million, down from a combined £1.7 million shared by him and three former CEOs the previous year.
Despite the restrictions, Southern Water’s chief executive Lawrence Gosden saw his pay climb by 80% to £1.4 million. The company claimed this was part of a longer-term incentive plan, not a conventional bonus, and noted some payments were contingent on future environmental performance.
Public backlash has continued to grow over the sector’s performance and executive compensation. Campaigners argue that rising executive pay is unjustified, given the continued failure to upgrade infrastructure, stop pollution, or build new reservoirs. England and Wales have not seen a new reservoir constructed in over three decades, while around 3 billion litres of water are lost daily due to leaking pipes.
Chief financial officers across 12 firms saw a slight pay drop of 3%, falling to £7.6 million. However, this decline was largely due to the departure of Thames Water’s Alastair Cochran, whose pay fell from £1.3 million to £636,000. Excluding Thames, CFO pay rose by 7% on average.
The highest-paid executive in the industry remains Liv Garfield of Severn Trent, who earned £3.3 million. Severn Trent, a FTSE 100-listed company, supplies water and waste services to 4.6 million homes across the Midlands and North Wales.
