A water company serving 3.9 million customers in London and south-east England has doubled the pay of its chief executive despite the regulator saying it had “elevated concern” over its financial situation.
Affinity Water said its chief executive, Keith Haslett, received £1.6m for the 2024-25 financial year, up from £709,000 the year before.
Bosses’ pay at privately owned water companies has been under intense scrutiny in recent years as the public and politicians expressed increasing anger over leaking infrastructure and sewage spills into rivers. Campaigners have criticised high pay for executives for a service that is essential for life, and over which they hold monopolies in each area.
It also emerged this week that Severn Trent, which supplies an area covering Bristol to the Humber, and mid-Wales to the East Midlands, awarded its chief executive, Liv Garfield, £3.3m for the 2025 financial year. That was up 2% compared with the year before, and took her total pay since taking over in 2014 to about £31m.
Affinity Water provides water services to customers mainly to the north and west of London – including parts of Hertfordshire and Essex – as well as areas of Surrey and Kent.
Affinity is owned by the German insurer Allianz, the FTSE 250-listed infrastructure fund HICL and DIF, part of the US private equity fund CVC.
In November Ofwat, the water regulator for England and Wales, said it had “elevated concern” over its finances because of debt levels equivalent to 75% of the value of its assets – above the 60% Ofwat targets – and the failure of its owners to invest in line with a previous business plan. However, the shareholders in February agreed to invest £150m, easing the financial pressures.
The pay increase for Haslett, which emerged in its annual report published last week, was mainly due to a new “retention payment” of £503,000. He was also awarded an extra £251,000 under a new long-term incentive plan, while his annual bonus increased 29% to £350,000. That was on top of a base salary and other benefits worth £449,000.
The company’s remuneration committee noted the “unprecedented level of adverse public and political sentiment” around high pay for executives.
The bosses of six water companies – Thames Water, Anglian Water, Southern Water, United Utilities, Wessex Water and Yorkshire Water – were banned from receiving bonuses last month because of sewage spills. However, Affinity does not provide sewage services, meaning it is less likely to be caught by the ban.
The report also showed that the chief financial officer, Adam Stephens, received £298,000 for three months’ work, having joined the business in January.
An Affinity spokesperson said: “Remuneration for the chief executive reflects the strong performance of Affinity Water over the last three years when it has changed from being one of the weaker performers in the sector to being one of the strongest. Financial resilience has also improved with the commitment of investors to invest a further £150m in equity to support delivery in the next AMP,” referring to the five-year investment cycle for water companies.
“The remuneration package is entirely compliant with the tests set out in the Water (Special Measures) Act and the rules subsequently issued by Ofwat.”
A Severn Trent spokesperson told the Telegraph, which first reported on Garfield’s pay: “We’re the only company to receive the highest four-star status for environmental performance for the fifth consecutive year, and our £15bn business plan to invest was rated outstanding by the regulator.
“Executive pay is based on performance and Severn Trent are consistently recognised as leaders.”
