Southern Water boss given £183k bonus as bills rise

Southern Water's annual report shows Lawrence Gosden received a bonus of £183,000 in 2023-24

The chief executive of Southern Water has been given a £183,600 bonus despite the utility firm proposing an increase of 73% to household bills over the next five years.

Lawrence Gosden received the bonus as part of a £764,000 pay package, up from £428,000 a year earlier, according to the company’s annual report.

Southern's chief financial officer, Stuart Ledger, received a £128,000 bonus, taking his total pay to £610,000.

A Southern Water spokesperson said both senior executives had "declined" a bonus last year and would receive a "partial" bonus in 2024, paid for by shareholders rather than by customers.

Southern Water's proposed hike in bills - which was the largest of those put forward by English water firms - was rejected by Ofwat last week.

A 44% increase in bills for Southern Water customers over the next five years, which equates to £183, has instead been proposed by the regulator.

Lawrence Gosden became chief executive of Southern Water in July 2022

Ofwat's chief executive David Black told Radio 4's Today programme last week that the watchdog was "very concerned" about the level of bonuses that water firms are paying.

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The proposed bill rises can be challenged by the water firms, with a final determination due at the end of the year, and increases set to take place from April.

The Labour government has pledged to give Ofwat powers to block the payment of bonuses at poorly-performing water firms.