Wessex Water granted its chief executive an above‑inflation salary increase despite being barred from awarding bonuses due to sewage spill violations.
In October, Ruth Jefferson’s base salary rose 14%, climbing from £590,000 to £670,000 before additional benefits, as disclosed in this month’s accounts. This increase far outpaces the 3.5% raise given to staff and places her earnings at roughly 18 times the median employee’s pay.
Executive compensation in the water sector has faced intense scrutiny lately, driven by public anger over sewage discharges into Britain’s rivers and seas. In response, the government instituted a bonus ban in 2025 for firms linked to serious pollution or that fail financial assessments.
Malaysian‑owned Wessex Water, which serves 2.9 million water and sewerage customers across south‑west England—including Bristol, Bath and Bournemouth—noted in its report that it anticipates breaching the bonus ban, especially concerning environmental and operational performance metrics.
Including pension and other unspecified benefits, Jefferson’s total compensation for the year amounted to £791,000. The prior year, she earned £440,000 for six months while serving as chief compliance officer before assuming the chief executive role.
Another water firm, Anglian Water, granted its chief executive, Mark Thurston, a £500,000 retention payment despite the bonus prohibition.
The payment to the former HS2 railway chief was made by Anglian’s parent company, which argued that the arrangement was permissible because it was not tied to performance.
Anglian stated that the payment was not a substitute for bonuses and was issued to Thurston in July 2025 using funds that would have otherwise gone to shareholders, aiming to secure his continued service until January 2027.
The company’s annual report expressed a long‑standing belief that banning bonuses is unhelpful, arguing that it would be more effective to reward improvement instead.
An Anglian Water spokesperson explained that the firm provides targeted, time‑limited retention arrangements to preserve leadership continuity, emphasizing that these payments do not replace bonuses and are not funded by Anglian Water Services or its customers, noting that shareholders bear the cost.
Gary Carter, a national officer at the GMB union, remarked: “The government has attempted to curb water company executives awarding themselves large bonuses, yet they continually devise ways to circumvent the legislation and line their pockets.
“Water chief executives have not grasped that the public is tired of excessive pay and corporate failures; as long as they can enrich themselves, they will continue to do so. The responsibility lies with ministers and regulators to devise a means to stop this behavior.”
Wessex stated that no payments were made to executive directors from other group companies in the most recent year, after the Guardian disclosed in January that £51,000 in previously undisclosed payments had gone to Jefferson and chief financial officer Andy Pymer—a revelation that MPs later highlighted in Parliament.
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Wessex Water is ultimately owned by Yeoh Tiong Lay & Sons Family Holdings, a company named after its late Malaysian founder and incorporated in the Jersey tax haven. The utility said it was barred from paying bonuses because “circumstances arose during the year that would trigger the PRP [performance‑related pay] prohibition rule, based on overall company performance, especially environmental and operational metrics.”
Regulators allowed Wessex to raise customer bills by 21% over five years to finance infrastructure upgrades.
A Wessex Water spokesperson commented: “Following a planned review after her first year in the role, and as reflected in our accounts, the chief executive’s salary was adjusted to align remuneration with market benchmarks, having been intentionally set below comparable organisations at the time of her appointment.”
Yorkshire Water, another of England’s privatised utilities, also continued to receive similar payments from its group companies during the year. Its chief executive, Nicola Shaw, was paid £660,000 by parent firm Kelda Holdings, according to accounts released last week.
The disclosure drew sharp criticism from local politicians and campaigners. Ofwat, the regulator, announced it would compel companies to reveal payments made from other group entities.
Yorkshire Water’s board stated: “The board acknowledged the criticism received over the year regarding the undisclosed executive remuneration paid by the group’s parent company, Kelda Holdings Ltd, and pledged to become fully transparent moving forward to help restore trust.”
