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Severn Trent, a leading water company in the UK, has announced a significant increase in the long-term incentive plan (LTIP) for its new CEO, James Jesic. The LTIP has been raised from 200% to 400% of Jesic's base salary, potentially allowing him to earn up to £3.1 million. This change comes despite ongoing public dissatisfaction regarding the remuneration of water company executives.
Jesic's total potential earnings could reach £4.8 million in a single year when factoring in his salary, annual bonuses, LTIP, and other benefits. This substantial pay package could surpass that of his predecessor, Liv Garfield, and has sparked criticism from various stakeholders concerned about executive pay in the water sector, especially in light of rising living costs and inflation affecting consumers.
The decision to enhance the reward scheme reflects Severn Trent's strategy to attract and retain top talent in a competitive market, but it raises questions about the appropriateness of such high compensation levels for executives in the utilities sector, particularly during a time of economic strain for many households.
As the debate over water company pay continues, Severn Trent's move may further fuel discussions about corporate governance and accountability within the industry.
Source: www.theguardian.com – https://www.theguardian.com/business/2026/jul/04/severn-trent-water-doubles-ltip-reward-scheme-new-ceo-james-jesic