MPs have accused the CEO of Southern Water of “pure greed” and urged Lawrence Gosden to refuse a ‘massive payout’ after it emerged that his salary was set to double to £1.4m.
The 19 Labour MPs who represent constituents served by Southern Water said they were “appalled” by the “shameful and blatant” attempt by the company to get around a bonus ban.
In a letter, they listed recent failures including “major flooding,” “sewage spills” and “eye-watering bill hikes of 46.7%,” as reasons not to reward the firm’s boss.
The MPs wrote: “Customers will be shocked that while they are being asked to pay more, you will be laughing all the way to the bank.
“We urge you to do the right thing and decline this disgraceful payment for failure.”
Mr Gosden was awarded £691,000 under a two-year long-term incentive plan on top of his current salary of £687,000.
This is despite Southern Water being banned from paying bonuses after a serious sewage leak in the New Forest in Hampshire last year.
It comes as the Environment Secretary Steve Reed announced that new legislation would rule out these types of pay increases in future.
The government has confirmed that water regulator Ofwat is to be scrapped, following the publication of a landmark report.
Speaking over the weekend, Mr Reed described the pay rise as “outrageous” and called on Mr Gosden to turn it down.
He told the BBC: “I don’t think Southern Water has performed well enough for that kind of pay increase to be merited.”
Read more:
Key recommendations from the water report
Labour to eliminate unauthorised sewage spillages in 10 years
Southern Water has previously defended the decision, saying they have not paid out bonuses and have made record investments in order to turn around the failing business.
The company has been approached for comment.
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