Liv Garfield is stepping down as chief executive of Severn Trent after 11 years at the helm of the water company. The supplier announced the leadership change alongside strong half-year results showing pre-tax profits jumped 60% to £307.8 million.
Garfield will leave at the end of December but stay with the business until March to ensure a smooth handover. She will be replaced by James Jesic, currently the company's capital and commercial services director and managing director of Hafren Dyfrdwy Cyfyngedig in north east and mid-Wales.
The company also upgraded its annual outlook, now expecting performance incentives of at least £40 million against previous guidance of at least £25 million. This improvement is driven by strong performance in reducing leakage, storm overflow spills and pollutions.
Internal successor takes helm
Jesic joined Severn Trent as a graduate in 2003 and has since worked across the full breadth of the business. He will be paid £775,000 as a starting annual salary, compared to the £873,200 Garfield currently receives before benefits and bonuses.
Christine Hodgson, chairwoman of Severn Trent, called the new chief executive a «home-grown leader who has already played a significant role in the success to date of Severn Trent». She added: «His operational expertise and performance focus, along with his passion for our people, purpose and region, make him the ideal person to lead Severn Trent into our next phase.»
Context of rising bills and public pressure
The leadership transition comes as water firms face growing public outrage over rising bills alongside high levels of sewage pollution and executive bonuses. Severn Trent hiked bills by an average of 21% in April, equating to a roughly £99 annual increase. The average household now pays £556 over the course of the year.
The company said at the time that the sharp increase would help fund about £15 billion in investment to upgrade its network of pipes, sewers and reservoirs over the next five years. Severn Trent serves more than 4.7 million households and businesses across the Midlands and Wales.
Severn Trent is among the better performing privatised water companies on environmental metrics in recent years. The watchdog Ofwat said in October last year that the company beat recent targets. Severn Trent expects to halve storm overflow spills to around 13 in 2025 and is on track to hit its leakage reduction target for the eighth year running.
Garfield said: «It has been a true privilege to be the chief executive for the last 11 years. I am proud that together we have become widely recognised as a sector leader and now have our largest ever investment programme ahead of us.»
Note: This article was created with Artificial Intelligence (AI).
