South East Water boss faces bonus backlash as outages and shareholder concerns mount

South East Water is facing renewed scrutiny after it emerged that its chief executive, David Hinton, could receive a bonus of up to £400,000 despite widespread supply disruptions that left thousands of customers without water.

The potential payout has drawn criticism from shareholders and customers following a series of outages across parts of south-east England. In recent months, burst mains and infrastructure failures have caused prolonged interruptions, with some households reporting days without running water. The incidents have added to public frustration at water companies already under pressure over reliability and performance.

According to company disclosures, the bonus forms part of a performance-related pay package approved by the remuneration committee. South East Water has said the scheme is linked to a range of operational and financial targets, not solely customer supply metrics. However, critics argue that rewarding senior executives during a period of service failure undermines public trust in essential utilities.

Shareholders have also raised concerns. At recent meetings, investors questioned how such a large bonus could be justified amid operational shortcomings, with some describing governance arrangements as inadequate. There are signs of unease about whether executive incentives are sufficiently aligned with customer outcomes and long-term infrastructure resilience.

The controversy has also attracted the attention of the regulator, Ofwat, which has already been monitoring South East Water following repeated outages. Ofwat has the power to impose fines or enforcement action if companies are found to be falling short of service standards, and has previously warned water firms over executive pay linked to poor performance.

South East Water said it recognises the impact outages have had on customers and has apologised for disruption, adding that it is investing in network improvements to reduce future failures. The company maintains that remuneration decisions follow established governance processes.

The row highlights broader tensions across the UK water industry, where rising bills, infrastructure investment gaps and executive pay have become flashpoints. As pressure grows from regulators, shareholders and the public, water companies face increasing calls to demonstrate clearer accountability when essential services fail.