4 days ago
Severn Trent boss paid £3.2m despite rise in sewage spills
The boss of Severn Trent took home a pay package of £3.3m in salary and bonuses last year despite overseeing a jump in sewage spills and customer complaints.
Liv Garfield was awarded a basic salary of £830,000, plus a further £2.3m in bonuses and benefits. Her annual bonus of £830,000 was a 42pc increase on the previous year.
She also received £1.5m in payouts linked to long-term bonus schemes, and a further £143,000 in benefits, including a 'green travel allowance' of £15,000.
Ms Garfield's latest pay awards, which means she has earned roughly £29m since taking charge in 2014, came in a year when the FTSE 100 company chalked up multiple performance failings.
There were a total of 62,085 sewage spills at its plants, up from 60,253 the previous year – equivalent to 454,155 hours of outflows, according to data from the Environment Agency.
Water companies released raw sewage into England's rivers and seas for a record 3.6m hours in 2024.
The number of sewer flooding incidents that occurred in the gardens and driveways of Severn Trent customers also jumped from 6,721 to 7,018, while complaints about the quality of the water that Severn Trent provides leapt 17pc to more than 9,000.
It was also responsible for 274 pollution incidents, an increase from 239 in 2023, and 193 the year before that.
Meanwhile, the company ranked 11th on Ofwat's customer satisfaction measure, a result that Sharmila Nebhrajani, chairman of Severn Trent's remuneration committee, described as 'disappointing' in its most recent annual report.
Chronic failings
Ms Garfield's latest pay rise comes at a time when scrutiny of the water industry has never been higher.
Public trust in water suppliers has collapsed to a historic low as a result of chronic failings stretching back many years, leaving Thames Water on the brink of collapse and facing a possible government-led bailout.
Meanwhile, households across the UK are being threatened with hosepipe bans by suppliers as demand for drinking water soars during the heatwave.
Earlier this year, Ms Garfield said Severn Trent customers would not face a hosepipe ban this year. However, last week the company urged customers to be 'mindful of their water use' as temperatures rose.
Last year, Ms Garfield defended her pay arguing that Severn Trent has 'made massive progress on river quality'.
Writing in the company's most recent annual report, chairman Christine Hodgson said: 'Restoration of trust in our sector remains a significant challenge but it is a challenge we are passionate about meeting successfully.
'The sector as a whole must respond to this by improving performance … to rebuild trust.
'I am proud of the role Severn Trent is playing in forging a path to meet these expectations – through setting bold ambitions, accelerating investment, with the support of our shareholders, and embodying the social purpose we so passionately believe in.'
A Severn Trent spokesman said: 'We're the only company to receive the highest 4* status for environmental performance for the fifth consecutive year, and our £15bn business plan to invest was rated Outstanding by the regulator.
'Executive pay is based on performance and Severn Trent are consistently recognised as leaders
'Over 2,000 storm overflow interventions have contributed to a reduced average spills performance, meaning we are on track to reduce average spills. We are absolutely committed to delivering for our customers.'
