Water company executives have seen their total pay packets rise by 20 per cent on average over the last year, new research suggests.
The analysis of water companies’ annual returns by the Liberal Democrats found that 22 bosses at firms across the country were paid around £24.8 million in the last financial year.
The remunerations included £14.7 million in bonuses, benefits and incentives – an 18 per cent increase on the previous year – with an average annual bonus of around £600,000.
According to the Lib Dems, the combined bonuses and salaries per water company executive rose by 21 per cent from 2020/2021 to 2021/22.
Publishing the figures, the party also hit out at the “national scandal” of leaks and sewage being pumped into the sea, with pollution warnings at more than 40 beaches.
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According to data gathered by the environmental campaign group Surfers Against Sewage (SAS) the south west and south coast of England were worst affected after heavy rain overwhelmed the sewage system on Wednesday.
The Lib Dem’s environment spokesperson Tim Farron said: “These disgusting polluting habits have made beaches unsafe in the middle of the summer holidays and harmed precious British wildlife.
“Hosepipe bans could have been avoided this summer if these water company CEOs bothered to invest in their rusting pipes rather than stuffing profits in their pockets”.
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Alamy Stock Photo)
He added: “Worst of all, ministers are just letting them get away with it. The government blocked a ban on sewage being pumped into our waterways and allowed creaking pipes to burst”.
David Black, the boss at water regulator Ofwat, said: “I was very clear with company remuneration committees in March that performance-related pay for CEOs should be clearly linked to their performance for customers, the environment and society.
“We are carrying out our own analysis and plan to report on whether we feel companies have clearly made this link.
“Performance-related pay can’t be a one-way street – if companies are not performing that should be reflected in executive pay.”
Lib Dem MP for Tiverton and Honiton, Richard Foord, said beaches in his Devon constituency had been among those marked unsafe due to sewage.
He added: “It’s not enough to keep talking about what needs to be done; we need to see action so our children do not have to build sandcastles next to sewage.
“Local people and holidaymakers shouldn’t be forced to swim amidst human waste.
“Devon’s beaches are amongst the best in the world but the Government is turning a blind eye while private companies ruin them.”
From next week millions of Thames Water customers in London will also face a hosepipe ban after the driest July on record. Earlier this week the company said reservoir storage levels had “reduced significantly”.