Salisbury Post

Who Owns South West Water? And How Much Do Its Executives Earn?

South West Water is the regional water and wastewater company serving around 1.8 million customers across Devon, Cornwall, and parts of Somerset and Dorset.

The company supplies drinking water, manages sewage treatment, and maintains thousands of miles of pipes and infrastructure across the South West of England.

Ownership Structure

South West Water is not owned by the government. It became a private company in 1989 when the UK water industry was privatised. Today, it is owned by Pennon Group, a UK-based infrastructure business.

Pennon Group is a publicly listed company on the London Stock Exchange. This means it does not have one single owner. Instead, it is owned by shareholders, which include pension funds, investment firms, and individual investors who buy shares in the company.

Because Pennon Group owns South West Water, major financial decisions  including executive salaries are made at group level.

Executive Salaries and Pay

Executive pay at South West Water is closely linked to Pennon Group, as the senior leadership team sits within the parent company.

Chief Executive Salary

The Chief Executive of Pennon Group has been Susan Davy in recent years. Her compensation package has drawn public attention, particularly during periods of environmental scrutiny in the water sector.

Her pay typically includes:

• A base salary of just over £500,000 per year

• Annual performance bonuses (which can vary)

• Long-term share awards linked to company performance

In some recent years, her total pay package has approached or exceeded £800,000 when bonuses and share incentives are included. However, bonus payments have sometimes been reduced or declined during periods of environmental controversy.

How Executive Pay Is Decided

Executive salaries are set by a remuneration committee made up of independent board members. Pay is usually linked to:

• Financial performance

• Environmental targets

• Customer service standards

• Regulatory compliance

Water companies in England are regulated by Ofwat, the industry regulator, which monitors performance and can impose fines for failures.

Public Debate Over Pay

Executive pay at water companies, including South West Water, has become a major topic of political and public debate. Critics argue that high salaries and shareholder dividends are difficult to justify during times of:

• Sewage discharge incidents

• Rising customer bills

• Environmental concerns

Supporters of the current system argue that private investment allows companies to fund infrastructure upgrades and that executive pay reflects the size and complexity of running major utility businesses.

Conclusion

South West Water is owned by Pennon Group, a publicly traded company listed on the London Stock Exchange. While there is no single individual owner, shareholders collectively own the business.

Executive salaries, particularly at CEO level, can reach well over half a million pounds per year, with total pay often higher when bonuses and share awards are included. These pay levels remain under public scrutiny as debates continue over regulation, investment, and environmental performance in the UK water industry.