Branch2 Intelligence
Severn Trent doubles CEO reward plan to £3.1m despite anger over water pay
Key takeaway
Severn Trent doubles new CEO James Jesic's LTIP to 400% of salary, potential total £4.8m.
- Step 11st-order: Severn Trent doubles CEO LTIP to 400% of salary, increasing potential pay to £4.8m.
- Step 22nd-order: Public and political backlash intensifies, leading to regulatory scrutiny from Ofwat and potential intervention in executive pay.
- Step 33rd-order: Increased regulatory risk raises Severn Trent's cost of capital and depresses its equity valuation, affecting its ability to finance infrastructure investment.
- Step 44th-order: Higher financing costs and regulatory pressure may lead to higher water bills for customers, including UK SMEs, or reduced investment in supply resilience.
Source: Guardian Business
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