Union blasts Severn Trent chief over £2.45m salary

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The GMB union said Liv Garfield was the highest-paid privatised water company boss in England last year, pocketing 13 times more than Prime Minister



The Coventry-based chief executive of Severn Trent was the highest-paid privatised water company boss in England last year, pocketing 13 times more than Prime Minister, claims a trade union.

Liv Garfield took home a salary package worth £2.45 million in 2017.

And over the past five years, the chief executive’s post earned a remuneration package worth £10.5 million in salary, bonuses, pensions and other benefits.

Ms Garfield has been in the top job at Coventry-based Severn Trent since April 2014, prior to which Tony Wray had held the role since 2007.

Trade union GMB has conducted research into the remuneration packages of chief executives at privatised water companies in England.

It says the average package in 2017 was £1.25 million - a figure six times higher than the pay and pension of the Prime Minister.

Ms Garfield’s package is £1.19 million higher than the average for the privatised water industry in England, according to GMB, and represents a 50 per cent increase since 2013 when Severn Trent’s chief executive then took home £1.63 million.

The figures come from a joint investigation into Severn Trent’s company accounts by GMB and research body Corporate Watch which are being revealed at the union’s congress in Brighton this week.

GMB is going on the attack as it launches a new campaign called ‘Take Back The Tap’ which is calling for England’s water industry to be brought back into public ownership.

Consumer water bills in England and Wales have increased by 40 per cent above inflation since privatisation in 1989, according to a report by the National Audit Office.

GMB’s general secretary Tim Roache said: “It is a national scandal that, over the last five years, England’s hard-pressed water customers have been forced to splash out millions through their bills to go into the pockets of just nine individuals.

“Privatisation of the water industry has been a costly mistake and these eye-watering sums are further proof the water industry must be returned to public hands.

“GMB is urging people and politicians to ‘Take Back the Tap’ and make our water services work for the many and not the few.

“Water is the most natural monopoly and should be in public hands.”

A girl's gotta eat!

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While poor children don't get meals.

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Union outcry over Severn Trent's £1.1bn shareholder payout



A trade union has launched a three-pronged attack on Coventry-based water company Severn Trent for its payouts to shareholders, water leakage and the salary of its boss.

The GMB said it had conducted an investigation which revealed Severn Trent shareholders have made almost £1.1 billion in just five years.

The union said shareholders received a total of £190 million in 2017 alone.

It also highlighted the fact that more than 400 million litres of water are lost every day through leaks.

Last month, GMB was critical of the fact Severn Trent’s CEO Liv Garfield received £10 million in salary, bonuses, pensions and other benefits over the past five years.

The figures come from a joint investigation into the accounts by GMB and Corporate Watch as part of GMB’s Take Back the Tap Campaign to bring England’s privatised water industry back into public ownership.
Rising bills

The GMB also highlighted the fact consumer water bills in England and Wales have increased by 40 per cent above inflation since privatisation in 1989 - according to a report by the National Audit Office.

GMB general secretary Tim Roache said: “Forking out billions to shareholders, while bills rocket and trillions of litres of water are wasted shows just how broken the system is.

“We all need water, it’s not an optional extra, it’s absurd that something we all depend on is in private hands delivering eye watering payouts instead of being run for the public good.

“That’s why GMB is calling for the water industry to be brought back into public ownership.”

However Severn Trent said the company was run in a way which balanced the needs of both customers and investors and had a £3.3billion investment programme.

The company also defended the remuneration of its chief executive and said it offered good value for money.

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Huge Severn Trent Water profits see share prices soar



Coventry water company Severn Trent has revealed its profits soared by 6.8% to £563million.

Group turnover also rose by 4.2% to £1.77billion after the utility giant hailed a “strong second half” for the 2018/19 financial year.

A rise in costs following supply shortages last summer was offset by performance-related incentives from Ofwat.

The firm, which serves around eight million people across the Midlands, also said that its preparations for a no-deal Brexit are well advanced and include a special steering committee to oversee its contingency planning.

Chief executive Liv Garfield said: “This has been a year where our teams have really stepped up, whether in response to customer needs in the face of one of the hottest and driest summers we’ve seen or by being named by Ofwat as one of the top companies in the sector when we received fast-track status for our future plans.

“At the heart of all of that is our drive to succeed for all of our stakeholders, which is shown in the results we’re announcing today.

“They demonstrate not only that we can deliver for our investors but also that we’re putting ourselves at the heart of the communities in which we live and work by building a lasting legacy for future generations.”

On Tuesday after the results were released shares in the company rose 0.9% to 1,936p in early trading.