Water bosses’ pay hike as bills soar

SCOTTISH Water is refusing to rule out more bumper bonuses for bosses as it forces through savage increases in charges for customers.

Three executive directors at the public body, which is accountable to SNP ministers, shared a £227,000 windfall last year because of its financial performance.

The utility has imposed a 4.2 per cent hike in charges from the start of this month. It has indicated a further increase of up 11 per cent may be required next year. Bosses are eligible for another payment this year, with the exact level to be determined by the 2021-22 financial results, to be published in the summer.

Scottish Water confirmed that decisions on the levels of payments for its ‘annual out-performance incentive plan’ (AOIP) will be made ‘in due course’.

Scottish Labour deputy leader Jackie Baillie said that with ‘a very real cost of living crisis facing customers of Scottish Water’ to ‘award these eye-watering bonuses is simply unacceptable’.

Scottish Water’s annual accounts for 2020-21 shows that chief executive Douglas Millican was awarded a £92,000 AOIP payment in addition to his £267,000 salary and £12,000 of other benefits, although he opted to waive the bonus payment, with the utility donating it to charity.

Chief operating officer Peter Farrer received a £68,000 bonus, on top of his £197,000 salary and £11,000 in benefits. Finance director Alan Scott received a £67,000 AOIP payment, a £195,000 salary and £11,000 in benefits.

Scottish Water said: ‘Executive remuneration is set by [the] board to attract and retain individuals who can achieve high performance and deliver good value for customers.’