Nine water firms splash out £58m on fat cat bosses
A STAGGERING £58million has flowed into the pockets of nine water firms’ fat cats in five years, a probe has found.
the chief executives netted the huge sum in salaries, bonuses, pensions and benefits in a ‘national scandal’.
Liv garfield, 42, boss of severn trent Water, was highest paid in the sector last year, earning £2.5million. she has raked in around £7million since 2014. steve Mogford, 61, of United Utilities, which serves three million homes in the north West, has earned around £12million since 2013.
the gMB union is highlighting pay figures today as it launches a campaign to take the industry back into public ownership.
gMB general secretary tim roache said: ‘it is a national scandal that over the last five years england’s hard-pressed water customers have been forced to splash out £58million through their bills. Privatisation of the water industry has been a costly mistake and these eye-watering sums are further proof the water industry must be returned to public hands.
‘Water is the most natural monopoly and should be in public hands.’
environment secretary Michael gove has already pledged to crack down on profiteering water companies after bills for consumers rocketed by 40 per cent more than inflation between privatisation in 1989 and 2015.
the average water bill for 2018-19 is predicted to be £405 compared to £285 in 1989.
in April, Mr gove met water firm chiefs to demand change and has promised to give more powers to help the regulator Ofwat crackdown on firms that fail to comply. Labour leader Jeremy Corbyn wants to renationalise the sector.
the water industry has been under growing pressure following concerns that firms are putting payouts to bosses and shareholders ahead of customer service and bills.
some firms have subsidiaries in offshore tax havens such as the Cayman islands.
thames Water gave shareholders £1billion over the ten years to 2015 while paying no corporation tax. it was fined a record £20.3million last year for polluting the thames. it says it is deferring tax payments due to investment, as rules allow.
Michael roberts, chief executive of industry group Water UK, said: ‘Water companies have invested around £150billion on improvements and infrastructure in the last 30 years. Bills are roughly where they were 20 years ago – about £1 a day.’