The head of under pressure South West Water’s parent firm has foregone her annual bonus and donated a long-term award to a scheme in support of struggling customers, saying “it’s the right thing to do”.
Pennon chief executive Susan Davy told investors she took the decision because executive remuneration remained in the media and regulatory spotlight amid anger over the industry’s performance on issues such as supply security, bills and sewage spills.
The group’s annual report showed her total package rose in 2023/24 to £860,000 from £543,000 in the previous financial year.
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While her salary went up to £492,000 from £475,000, Ms Davy said she would not be taking a bonus for a second year or her 2020 long-term award.
Instead, the report said, the £298,000 in the long-term award would be diverted from her total package to the company’s WaterShare+ scheme.
Pennon said the scheme “directly benefits our customers by either providing money off their bill or via ownership of Pennon shares”.
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The report was published weeks after Pennon posted an 8.6% increase in underlying operating profits to £166.3m for 2023/24.
Dividend payments to shareholders increased by 3.8% – a reduced rate to cover the cost of a £2.4m fine for multiple pollution incidents over the period.
The publication of its results took place as Pennon’s South West Water division grappled a public health emergency.
Around 17,000 households in the Brixham area of Devon were told to boil their drinking water at the peak of last month’s alert following an outbreak of cryptosporidiosis.
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It left hundreds of people ill and has been linked to cow dung.
A few thousand customers are still affected by the so-called boil water notice.
The company has agreed to pay customers £3.5m in compensation.
Pennon separately announced on Monday that David Sproul would be its new chairman, replacing Gill Rider after its annual general meeting in July.
