Latest news with #LawrenceGosden
Yahoo
21-07-2025
- Business
- Yahoo
'Pure greed': MPs demand Southern Water CEO refuses 'massive payout'
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. 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: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.
Sky News
21-07-2025
- Business
- Sky News
'Pure greed': MPs demand Southern Water CEO refuses 'massive payout'
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. 3:21 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." 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.
Sky News
21-07-2025
- Business
- Sky News
'Pure greed': MPs demand Southern Water SEO refuses 'massive payout'
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. 3:21 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." 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 Sun
20-07-2025
- Business
- The Sun
Southern Water's boss slammed by Environment Secretary for accepting £691,000 pay hike
ENVIRONMENT Secretary Steve Reed yesterday slammed Southern Water's boss for accepting a £691,000 pay hike. Lawrence Gosden, who has run the embattled utility firm since 2022, was awarded the 'long-term incentive' scheme on top of his £687,000 salary. 2 Despite only receiving half the bumper bonus so far, Mr Gosden's total earnings have soared past the £1million mark. Steve Reed said the that the payout was 'not deserved' and 'sends the wrong message' as customer trust plummets. He said: 'Trust is at rock bottom. ' Southern Water hasn't performed well enough for that kind of pay. 'He should give it up.' The backlash comes just weeks after Southern Water was banned from paying bonuses following a sewage spill in the New Forest, an environmental breach known as a category one incident. Under new government rules, firms that pollute or fail to meet standards can't dish out bonuses. But Southern Water has insisted Mr Gosden's payout isn't a 'bonus' but part of a performance-linked scheme launched in 2023. Doubling Compensation for Water Issues: Government's Big Move 2
Rhyl Journal
20-07-2025
- Business
- Rhyl Journal
Southern Water boss should refuse ‘outrageous' pay rise
Lawrence Gosden, who has led Southern Water since 2022, was awarded £691,000 as part of a long-term incentive plan this year on top of his fixed pay of £687,000, according to the company's annual report. It is understood that he has only received half of this payment this year, taking his total pay to more than £1 million. Asked on Sunday about Mr Gosden's pay, Environment Secretary Steve Reed told the BBC's Sunday With Laura Kuenssberg it was 'outrageous' and implored Southern to 'think about how this looks to their customers'. He said: 'Trust between the customers and the water companies is at the lowest point probably ever, and by paying their senior executives rises of that kind, what message are they sending to their customers?' Asked whether Mr Gosden should turn down the pay rise, Mr Reed said: 'I think it would be right if he did.' He added: 'I don't think Southern Water has performed well enough for that kind of pay increase to be merited.' Southern Water was banned from paying bonuses last month over a so-called 'category 1' sewage spill in the New Forest, Hampshire, in August 2024. Under new rules, companies are banned from paying bonuses if they do not meet environmental, consumer or financial standards, or are convicted of a criminal offence. Southern Water has insisted the payment to Mr Gosden is not a bonus but part of a long-term incentive plan set up in 2023 and linked to a two-year effort to improve the company's performance. It is also paid directly by shareholders rather than out of consumers' bills. A Southern Water spokesperson said its chief executive's pay and benefits were decided by a remuneration committee 'following protocols and rules set out by Ofwat and in accordance with the law'. They added: 'Lawrence Gosden's 2025 package includes a relocation allowance, and long-term incentive plan paid by shareholders which marks improvements made during the delivery of our turnaround plan. Both of these payments represent common industry practice.' Mr Reed's criticism of Mr Gosden's pay package came before the publication of a landmark review of the water industry, which is expected to recommend sweeping reforms to how the sector is regulated, including the abolition of regulator Ofwat. The review follows widespread criticism of water companies for awarding executives large bonuses and paying significant dividends to shareholders while missing targets for investing in infrastructure and overseeing a rise in sewage pollution in England's rivers. Earlier this month, Southern Water itself was forced to ask its owner, Australian investment firm Macquarie, for an extra £2.1 billion to help boost its struggling finances. The company, which supplies 4.7 million people across the south and south-east of England, has amassed nearly £9 billion of debt – making it one of the most heavily indebted water firms in the UK behind Thames Water, previously also owned by Macquarie.
