'This does not feel appropriate': MP wants rethink over Severn Trent's increased CEO bonus plans

The MP is one of a number who signed the letter.

A Shropshire MP has joined a number of her colleagues in calling for Severn Trent Water to reconsider plans that could increase a bonus paid to its chief executive.

Julia Buckley, Labour MP for Shrewsbury, added her name to the letter from Cat Eccles, MP for Stourbridge, to James Jesic, CEO of the water firm.

The letter describes the MPs as ‘appalled’ at news that Mr Jesic’s pay could increase significantly.

The firm has said its Long Term Incentive Plan would increase from 200 per cent of Mr Jesic’s salary to 400 per cent - meaning he could receive up to £4.8m for the role.

The amount could also fall depending on poor share price performance.

Ms Eccles said the development comes “despite Severn Trent being responsible for more than 300 pollution incidents in 2024 and continuing to face widespread public concern over the environmental impact of its operations.”

She added: “This decision is particularly troubling at a time when customers are being asked to pay higher water bills while many rivers, streams and waterways across your region continue to suffer from pollution.”

Mrs Buckley said: “I have joined fellow MPs in co-signing this letter to Severn Trent Water urging the company to reconsider plans to significantly increase executive bonuses to as much as £3.1m.

“This does not feel appropriate whilst customers face higher water bills and our waterways continue to suffer from persistent sewage pollution.

“There were more than 300 pollution incidents reported in 2024 and many residents remain worried about the condition of local rivers and streams.

“Customers rightly expect their money to be invested in improving infrastructure, reducing leaks, preventing pollution and protecting the environment.

“Alongside my fellow MPs from across the region, I am calling on Severn Trent to put customers before profit.

“They need to consider communities and environmental performance first.

“Public trust is earned through accountability, responsible stewardship and cleaner waterways—not larger bonuses while households are paying more.”

A Severn Trent spokesperson said: “Our remuneration policy follows both the letter and the spirit of Ofwat’s rules and is entirely compliant.

“The Long-Term Incentive Plan (LTIP) is performance related pay and is not guaranteed, and it is not paid for by customers.

“By almost all measures, Severn Trent has been a consistent leading performer in the sector and critically, our policy is focused on delivering long term for our customers, communities and for the environment.”

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