Southern Water CEO Pay Sparks Criticism, Reform Calls

Environment Secretary Steve Reed has criticized the nearly £1.4 million pay package for Southern Water CEO Lawrence Gosden, calling it 'outrageous' and unjustified amid the company's poor performance and falling public trust. Gosden's pay nearly doubled, including a £691,000 long-term incentive plan and substantial benefits, despite a government ban on performance bonuses following the company's most serious pollution incident. Reed urged Gosden to refuse the pay rise, arguing it sends the wrong message during widespread anger over executive compensation in the troubled water sector. Industry sources highlighted that some payments, like relocation benefits and long-term incentives, fall outside the current bonus ban, raising concerns about regulatory loopholes. The sector faces scrutiny as a landmark review into the UK water industry may recommend regulatory reforms, including the possible abolition of Ofwat. The government will respond to the Commission's final report on the water sector in Parliament.