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Southern Water CEO's pay rise criticized by government

Environment Secretary calls £691,000 pay increase for CEO Lawrence Gosden 'outrageous'.

July 20, 2025 at 02:22 PM

Southern Water boss pay rise 'outrageous', says environment secretary

The environment secretary has criticized a significant pay rise awarded to Southern Water's CEO.

Southern Water chief's pay rise sparks anger from environment secretary

Lawrence Gosden, the chief executive of Southern Water, has received an additional £691,000 as part of a long-term incentive plan, raising his total earnings to over £1 million this year. Environment Secretary Steve Reed has called this pay rise "outrageous" and urged Gosden to reject it, emphasizing how it might be perceived by customers.

Key Takeaways

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Southern Water's CEO received a £691,000 pay increase this year.

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Total earnings for Lawrence Gosden surpass £1 million.

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Environment Secretary Steve Reed criticized the pay rise as outrageously high.

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Reed urged the CEO to reconsider the decision due to public perception.

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Public backlash against utility executive pay continues to grow.

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Consumer trust in utility companies may decline with such pay practices.

"This pay rise is not merited, especially in the eyes of consumers."

Environment Secretary Steve Reed emphasizes the inappropriateness of the pay raise.

"It looks outrageous to customers when executives earn over a million."

Reed highlights public perception of excessive executive pay.

This incident highlights the growing discontent regarding executive compensation in utility companies, especially during times when many consumers face rising costs. The public's trust in such organizations could be jeopardized if they feel that leaders are being compensated excessively, especially amidst service struggles. As Steve Reed pointed out, the optics of such pay raises can damage relationships with consumers who are already feeling the financial strain.