Wessex Water has come under renewed scrutiny after awarding its chief executive, Ruth Jefferson, a 14% salary increase despite restrictions preventing the company from paying executive bonuses because of its environmental performance.

According to the company's latest annual report, Jefferson's base salary increased from £590,000 to £670,000 in October, significantly higher than the 3.5% pay rise awarded to most employees. Including pension contributions and other benefits, her total remuneration for the year reached £791,000.

The pay increase comes as Wessex Water expects to be affected by the UK government's executive bonus ban, introduced in 2025 to prevent water companies responsible for serious sewage pollution or poor financial performance from rewarding senior executives.

Wessex Water serves approximately 2.9 million water and wastewater customers across south-west England, including Bristol, Bath and Bournemouth. The company acknowledged in its annual report that its environmental and operational performance is likely to prevent bonus payments under the current regulations.

The disclosure has intensified debate over executive pay in the UK's water industry, where companies have faced widespread criticism over repeated sewage discharges into rivers and coastal waters while customer bills continue to rise.

The issue follows similar criticism of Anglian Water, whose chief executive, Mark Thurston, received a £500,000 retention payment from the company's parent organisation despite bonus restrictions. The company said the payment was funded by shareholders rather than customers and was intended to retain leadership rather than reward performance.

Trade union GMB condemned the continued high executive remuneration, arguing that water company leaders continue to find ways around government restrictions while public confidence in the sector remains low. The union urged ministers and regulators to strengthen rules governing executive pay.

Wessex Water also stated that no additional payments were made to executive directors from other group companies during the latest financial year, following previous criticism over undisclosed executive remuneration.

The latest disclosures are expected to add further pressure on regulators and the government as concerns over environmental performance, corporate governance and executive pay continue to dominate the UK's water sector.