Pay surge for water company directors

WATER company bosses have enjoyed bumper pay rises as millions of customers face higher bills and hosepipe bans.

Executives earned up to 31% more in the last financial year after regulator Ofwat allowed them to raise prices by double-digit percentages to pay for infrastructure improvements.

Critics condemn the utilities for the fact that 40% of the water carried in their pipes is lost to leaks.

Peter Bowler of pressure group Water Watch said: 'Water company directors run feather-bedded monopolies with profit margins guaranteed by the regulator.'

At Pennon Group, owner of South West Water, chief executive Bob Baty's pay soared 24% to £289,000. Baty waived half his £74,000 cash bonus in a 'sympathetic' gesture towards customers, the company said. But he and fellow director Colin Drummond made £250,000 under a separate incentive scheme. Finance director David Dupont's pay was up 31% to £322,000. He also made £107,000 under a restricted share plan.

At Northumbrian Water Group, which has 4.3m customers, managing director John Cuthbert's pay leapt by 31% to £358,000. Total board pay gushed 32% higher to £931,000.

At Kelda, owner of Yorkshire Water, chief executive Kevin Whiteman's pay rose by a quarter to £523,000.

At Severn Trent, chief executive Robert Walker earned £1.1m in his final year, including £398,000 from a long-term incentive plan. Board pay rose 16%. Severn Trent's audit committee has cracked down on internal controls after revelations by Financial Mail.

The company's annual report shows the committee has ordered changes to the management and reporting lines after finance manager David Donnelly alleged the group faked documents to justify price rises.