Northumbrian Water granted its CEO a 65% bonus hike, even as it landed on Ofwat’s list of the bottom six water firms.
Heidi Mottram received a bonus of £215,000, a significant leap from the £130,000 she received the previous year. This increase comes despite Ofwat’s assessment that the company fell short of its performance benchmarks.
Serving areas like the northeast of England, Suffolk, and Essex, Northumbrian did not meet standards on water quality, leakages, and sewage overflows, achieving only five out of 12 set performance metrics.
Recent events also compelled the company to refute allegations linking them to a health incident at the World Triathlon Championship Series in Sunderland. Here, 57 participants fell sick following the discovery of exceptionally high e-coli levels in the water.
However, Northumbrian clarified that no discharges that could have impacted the water quality at Roker Beach had been recorded since October 2021.
The practice of sewage disposal has attracted significant scrutiny over the years, prompting UK water companies to apologize for discharging into rivers and coastal areas. Companies have also committed to amplifying their investment to £10 billion towards enhancing sewage systems.
Government regulations permit these firms to release sewage during heavy rainfall to prevent blockages in storm drains. However, swimmer associations and other advocacy groups suggest that these privileges are being misused.
A report by the Sunday Times disclosed that despite a £50 million loss, Northumbrian distributed £159 million as shareholder dividends in 2022.
It’s noteworthy that Mottram did fulfil the benchmarks established by Northumbrian’s stakeholders, which include the US private equity firm KKR and Hong Kong tycoon Li Ka-shing.
Incorporating the bonus, Mottram’s total compensation for the year was £781,000.
