Water boss awarded £270,000 bonus despite parasite outbreak that left more than 140 people ill
Pennon’s former chief executive Susan Davy received the payout after the board reversed an earlier decision to withhold it, despite anger over the Brixham cryptosporidium outbreak.
| Updated:Want LBC stories before everyone else? Set us as your Preferred Source on Google
A former water boss has been handed a £270,000 bonus despite a parasite outbreak that contaminated drinking water, left more than 140 people ill and triggered a major public health scandal in the South West.
Listen to this article
Susan Davy, the former chief executive of Pennon, has received the payout after the company’s board reversed an earlier decision to withhold it, reported the Telegraph.
Pennon owns South West Water, which was at the centre of a major scandal after cryptosporidium was found in drinking water in Brixham, Devon.
The outbreak affected around 17,000 homes and lasted 54 days, causing widespread disruption for residents and businesses in the area. South West Water later apologised and was fined £1.8 million over the incident after pleading guilty to supplying water unfit for human consumption.
At the time, Ms Davy said the crisis had caused her “sleepless nights” as the company faced criticism over its handling of the outbreak.
Despite the scandal, Susan Davy has now reportedly received £270,000 for 2024-25, along with an £87,000 bonus for 2025-26.
That comes on top of a salary and benefits package that took her earnings above £1 million in 2024-25, once pensions and share allocations were included.
Pennon says the payouts were reinstated after the board waited for guidance from Ofwat, the water regulator, on how new rules on executive bonuses would be applied.
Read more: South West Water owner says firm must ‘rebuild trust’ after parasite outbreak
Read more: South West Water sentenced for supplying water unfit for humans after parasitic outbreak
Ofwat introduced fresh powers this year allowing it to block bonuses in certain cases, including serious pollution incidents, and says it has already stopped £4 million being paid across the sector.
Pennon argues the latest bonuses were funded at group level rather than by South West Water itself, meaning they will not be paid directly by customers.
The row is likely to renew pressure on water companies over executive pay, with critics arguing that bosses should not be rewarded while customers face pollution, disruption and rising bills.