YORKSHIRE WATER’S executive directors received a 50% pay rise last year and the group finance director earned £1m – but the figures in the annual report don’t add up.
The directors’ earnings were boosted by a long-term incentive plan, which paid out £1.4m to five directors, including £555,000 to chief executive Richard Flint, to take his earnings to £1.475m.
The directors’ remuneration information, which showed an increase of £1.5m for the board, contains a mistake in the adding up of the emoluments for the group finance director Liz Barber.
In the year to March 2015, pre-tax profits were down 4%, to £136.0m, with turnover up 3% to £1.01bn. Net interest payable in the year rose by £26.4m, caused by a retail price index uplift on index linked swaps.
Chairman Richard Parry-Jones said customers had “benefited from some of the highest ever standards of operational and customer service as the company delivered unprecedented levels of performance”, but acknowledged the business has faced some challenges.
He said: “We have seen an increase in operating profit in the year, albeit the overall net profit has been impacted by the increase in interest costs we have faced.
“We have started the new financial year with a challenge to face from the credit agencies with Moody’s downgrading our corporate debt rating. This is following the continued pressure we face from our portfolio of financial derivatives. Our treasury team is focused on managing the impact of the derivatives and has had recent success in renegotiating terms.”
Yorkshire Water employs 2,300 people, of which 1,500 staff are operational, 300 work in capital investment and 500 in administration.
Yorkshire Water has been asked for clarification on the figures for the directors’ emoluments.
