MPs have accused the CEO of Southern Water of “pure greed” and urged Lawrence Gosden to refuse a ‘huge payout’ after it emerged that his wage was set to double to £1.4m.
The 19 Labour MPs who symbolize constituents served by Southern Water mentioned they had been “appalled” by the “shameful and blatant” try by the corporate to get round a bonus ban.
In a letter, they listed latest failures together with “main flooding,” “sewage spills” and “eye-watering invoice hikes of 46.7%,” as causes to not reward the agency’s boss.
The MPs wrote: “Clients will probably be shocked that whereas they’re being requested to pay extra, you may be laughing all the best way to the financial institution.
“We urge you to do the proper factor and decline this disgraceful cost for failure.”
Mr Gosden was awarded £691,000 beneath a two-year long-term incentive plan on prime of his present wage of £687,000.
That is regardless of Southern Water being banned from paying bonuses after a critical sewage leak within the New Forest in Hampshire final yr.
It comes because the Atmosphere Secretary Steve Reed introduced that new laws would rule out all these pay will increase in future.
The federal government has confirmed that water regulator Ofwat is to be scrapped, following the publication of a landmark report.
Talking over the weekend, Mr Reed described the pay rise as “outrageous” and referred to as on Mr Gosden to show it down.
He advised the BBC: “I do not assume Southern Water has carried out properly sufficient for that form of pay improve to be merited.”
Learn extra:
Key recommendations from the water report
Labour to eliminate unauthorised sewage spillages in 10 years
Southern Water has beforehand defended the choice, saying they haven’t paid out bonuses and have made document investments as a way to flip across the failing enterprise.
The corporate has been approached for remark.
