- Comes as Severn Trent invests £15bn in UK water infrastructure with bill hikes
Chief executive of Severn Trent Liv Garfield is stepping down after a 22-year career with the water group.
It comes as the firm embarks on its largest-ever infrastructure upgrade programme.
UK households are being whacked with enormous water bill hikes to fund critical infrastructure upgrades.
Such improvements have been underfunded for years as some operators have prioritised dolling out shareholder payouts and executive bonuses.
Severn Trent is setting out on a £15billion investment programme it says will halve storm overflow spills by 2030, reduce river pollution by 30 per cent and cut leakage by 16 per cent over the current regulatory period.
And its household customers, which span the Bristol Channel to the Humber estuary, and from mid-Wales to the East Midlands, have seen bills rise by an average of 22 per cent to £686 a year to help pay for it.
Over and out: Liv Garfield exits after 22 years with Severn Trent
Garfield was handed a £3.3million bonus last year as Severn Trent’s performance allowed the group to avoid regulator Ofwat’s clampdown on unjustifiable executive payouts in the sector.
Ofwat has blocked £4million in executive bonus payouts over the last year amid efforts to crack down on poor performance in the sector, which is still seeing operators fail to prevent critical pollution incidents.
Garfield initially joined Severn Trent as a graduate in 2003 and has since worked in roles across the business.
Severn Trent, which unlike worse-performing operators has maintained its stock market listing, told shareholders on Wednesday it was ‘the right time to transition to a new CEO’ after a ‘strong start’ to its major investment programme.
To replace Garfield, the group has selected insider and managing director of its Welsh unit Hafren Dyfrdwy Cyfyngedig, James Jessic, as its new CEO.
Severn Trent said Jesic, who also joined the group as a graduate, has ‘worked across the full breadth of the business’ since starting in 2003.
The group added: ‘James has delivered industry-leading financial and environmental performance, and operational transformation across water and waste networks during his 22-year career at Severn Trent.
‘He possesses a deep technical understanding of Severn Trent’s operations, and most recently played a leading role in expanding the commercial portfolio of the group, including the growth of Severn Trent’s renewables business, Green Power.’
Jessic will earn a starting salary of £775,000, compared to Garfield’s salary of £873,200.
‘Variable remuneration levels will match those of Liv’s current package, in line with the 2024 Remuneration Policy,’ Severn Trent said.
It came as Severn Trent reported annual revenue growth of 18 per cent to around £1.44billion for the six months to 30 September.
Outgoing boss Garfield said in a statement: ‘The next five years will be a period of exceptional growth for Severn Trent.
‘We have made a strong start to our largest-ever investment programme, frontloading our investments to deliver faster for customers.
‘Thanks to these early investments, we’ve upgraded our forecasts for this year’s performance incentives to drive improvements in the things our customers care about most, and delivered an unprecedented sixth consecutive year of top-rated environmental performance.
We’re confident we can deliver earnings growth and returns while investing even more for our customers, creating new jobs across our region and improving the environment for the communities we serve.’
Severn Trent shares were down 0.9 per cent to 2,690p by mid-morning. They are up by around 7 per cent since the start of 2025.
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