Water CEO Gets 14% Raise Amidst Sewage Scandal

Wessex Water's chief executive, Ruth Jefferson, received a substantial 14% base salary increase in October, bringing her annual pay to £670,000 before additional benefits. This occurred while the company, which serves 2.9 million customers in south-west England, was banned from paying bonuses due to numerous sewage spills. Her total compensation reached £791,000 including other benefits.

The water industry is under intense scrutiny, with a government ban on bonuses for companies with serious pollution issues implemented in 2025. Wessex Water acknowledged it would likely breach this ban, particularly concerning environmental metrics. The Malaysian-owned company, ultimately held by a firm incorporated in the Jersey tax haven, saw its chief executive's pay rise significantly above the 3.5% increase for its employees.

This situation mirrors issues at other water firms. Anglian Water awarded its chief executive, Mark Thurston, a £500,000 "retention payment" despite the bonus ban. The parent company stated this payment was from shareholder funds and not linked to performance. Unions criticized these practices, urging ministers and regulators to prevent executives from "sneaking past legislation" to increase their pay.

Yorkshire Water also disclosed similar executive payments from group companies. In response to criticism, Yorkshire Water committed to greater transparency in executive remuneration moving forward. Ofwat, the regulator, has mandated increased disclosure of payments from parent companies to address these concerns and rebuild public trust.