The chief executive of a water company that has left tens of thousands of households without supply for days is in line to receive a £400,000 long-term bonus, regardless of his performance, it can be revealed.
Bonus Payout Amidst Supply Failures
David Hinton, the CEO of South East Water, will receive the substantial payout if he remains in his post until July 2030. This 'service award' is not linked to performance, meaning Hinton will get the money irrespective of the company's record on water supplies or pollution incidents.
The revelation comes as the company faces intense scrutiny following two major outages in just over a month. In November and again in January, around 30,000 households in Kent and East Sussex were left without running water, forcing residents to collect bottled water from distribution centres and leave the area to wash.
The crisis has prompted Environment Secretary Emma Reynolds to call on the water regulator, Ofwat, to review the firm's licence to operate. Ofwat has now confirmed it has launched a formal investigation into whether South East Water complied with its obligations on customer service.
Mounting Political and Public Anger
The situation has thrust Hinton, who has led the company since 2020, into the political spotlight. Several MPs are now demanding he resign or refuse his bonus for this financial year.
Mike Martin, the Liberal Democrat MP for Tunbridge Wells, stated: "Dave Hinton’s salary and bonuses are wild. He should be ashamed. Try giving us water first, then let’s talk about the money." He added that all bonuses should be performance-related, quipping: "Obviously, bonuses should be related to performance otherwise they would be called salary."
Gary Carter, a national officer at the GMB union, said the arrangement "adds insult to injury to reward the very person ultimately responsible for failing customers – whilst simultaneously increasing their bills."
Details of the Remuneration Package
Hinton's total remuneration is complex and increasingly lucrative. In the year to June 2025, he received £457,000, including a £115,000 bonus. However, a 30% base salary increase to £400,000, plus two new payments, means he is on track for even more this year.
His fixed pay for this financial year could reach £565,000 if the £400,000 service award is divided equally over five years. The award will be paid in instalments, with the first £80,000 due in July 2028 and a final £240,000 in July 2030, provided he stays.
In addition, Hinton was awarded a £50,000 'cash allowance' to compensate for extra hours spent on an appeal to the Competition and Markets Authority to raise customer bills further—a task other water companies do not typically award extra pay for.
He remains eligible for a performance-related long-term bonus of up to £600,000 over the same period. South East Water's chief financial officer, Andrew Farmer, and other senior executives are also in line for similar packages.
Defence and Accountability
Facing MPs on the Environment, Food and Rural Affairs Committee earlier this year, Hinton said he did not want a focus on his pay during the crisis. He acknowledged that his performance-related bonus could be docked this year due to the supply failures.
"There are different elements to the bonus. For example, health and safety is one element, and a whole load of the elements are on water supply, and I do not expect to get a bonus on either of those elements," Hinton told the committee.
A company spokesperson stated: "South East Water remains committed to a remuneration framework that supports a performance culture, and recognises success but does not reward poor performance." They confirmed no bonus was paid for operational performance in 2024-25.
However, campaigners have criticised the structure. Paddy Goffey of the High Pay Centre said the guaranteed awards appeared to be "a novel form of compensation package" that was "rewarding substandard performance and a poor quality of service for customers, while also removing accountability."
As the regulator's investigation gets underway and communities in Tunbridge Wells, Tonbridge, and surrounding villages hope for a permanent solution, the controversy over executive pay at the struggling utility shows no sign of abating.
