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Water company CEO defends pay amid criticism

Chief executive Susan Davy faced scrutiny over her pay increase during a parliamentary hearing.

February 25, 2025 at 03:56 PM

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The chief executive faced tough questions about her pay during a recent committee meeting.

Chief executive of water company defends pay amid criticism

Susan Davy, chief executive of water utility Pennon, defended her pay rise during a grilling by MPs. After an outbreak of cryptosporidium that sickened hundreds last May, Davy reported her total compensation increased to £860,000, up from £543,000. She stated the pay was decided by a remuneration committee, not by her. As South West Water prepares for a 32% increase in bills by 2030, consumer groups criticized the company's profits and Davy's compensation. Although she does not take bonuses, she faced tough scrutiny over rising bills and shareholder dividends during the meeting.

Key Takeaways

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Davy's pay rose significantly despite customer service failures.

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MPs questioned her accountability after health incidents.

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Customer bills are set to increase while profits remain high.

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Public backlash against utility companies continues to grow.

"I've had a history of not taking annual bonuses."

This highlights Davy's stance on her compensation despite criticism.

"The sum was set by a remuneration committee, rather than by me."

Davy emphasizes her lack of control over her pay package.

"We have a lot more to do on customer service and engagement."

Davy acknowledges the need for improvements in her company.

"Bills at South West Water are to rise 32% by 2030."

This underscores the contrast between rising costs for consumers and executive pay.

Davy's defense of her substantial pay rise comes at a time when many feel the water industry falls short in customer care and environmental responsibility. The public outcry over rising bills, especially after a health scare, adds to her challenges. The tension between executive pay and customer satisfaction highlights a growing concern about accountability in utilities. As energy prices increase and consumer trust wanes, how companies like Pennon respond will be crucial for their reputations and future operations.