Southern Water CEO Faces MP Backlash Over £1.4M Pay Amid Sewage Failures

A group of Labour MPs representing constituencies served by Southern Water have condemned the company's CEO, Lawrence Gosden, for accepting a substantial long-term incentive payment of approximately £691,000 on top of his £687,000 salary, arguing it is a 'disgraceful payment for failure.' The MPs criticized the payout amid widespread customer bill hikes of nearly 47%, sewage spills, water outages, and flooding incidents attributed to Southern Water's poor performance. They argue the incentive payment circumvents a new government ban on executive bonuses introduced under the Water (Special Measures) Act, though Southern Water maintains the payment was agreed before the ban and funded by shareholders rather than customers. Environment Secretary Steve Reed described the bonus as 'outrageous' and urged Gosden to reject it, emphasizing that future similar payments would be prohibited by new legislation. Southern Water defends its CEO's pay as part of a turnaround plan and insists no traditional bonuses have been paid, highlighting record investments to improve the business. The controversy highlights public and political frustration with Southern Water's management amid ongoing service failures and rising costs to consumers.