'Pure greed': MPs demand Southern Water CEO refuses 'massive payout'
Environment Secretary Steve Reed has said new legislation will rule out these types of pay increases for bosses of underperforming water companies in future.
Monday 21 July 2025 18:58, UK
MPs have accused the CEO of Southern Water of "pure greed" and urged Lawrence Gosden to refuse a 'massive payout' after it emerged that his salary was set to double to £1.4m.
The 19 Labour MPs who represent constituents served by Southern Water said they were "appalled" by the "shameful and blatant" attempt by the company to get around a bonus ban.
In a letter, they listed recent failures including "major flooding," "sewage spills" and "eye-watering bill hikes of 46.7%," as reasons not to reward the firm's boss.
The MPs wrote: "Customers will be shocked that while they are being asked to pay more, you will be laughing all the way to the bank.
"We urge you to do the right thing and decline this disgraceful payment for failure."
Mr Gosden was awarded £691,000 under a two-year long-term incentive plan on top of his current salary of £687,000.
This is despite Southern Water being banned from paying bonuses after a serious sewage leak in the New Forest in Hampshire last year.
It comes as the Environment Secretary Steve Reed announced that new legislation would rule out these types of pay increases in future.
Speaking over the weekend, Mr Reed described the pay rise as "outrageous" and called on Mr Gosden to turn it down.
He told the BBC: "I don't think Southern Water has performed well enough for that kind of pay increase to be merited."
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Southern Water has previously defended the decision, saying they have not paid out bonuses and have made record investments in order to turn around the failing business.
A Southern Water spokesperson said: "Our CEO's salary and benefits are decided by the Remuneration Committee, with a majority membership of independent non-executive directors, and following protocols and rules set out by Ofwat and in accordance with the law.
"Lawrence Gosden's 2025 package includes a Long Term Incentive Plan paid by shareholders which marks improvements made during the delivery of our Turnaround Plan, such a more than 30% reduction in overall pollutions and 25% year-on-year fall in customer complaints."