Remuneration
How we incentivise and reward our people must align with our environmental, social, and governance priorities, so every employee is empowered to drive positive impact.
Aligning remuneration with sustainability
The importance placed on sustainability is reflected in our transparent reward and incentive structures.
The annual bonus structure is aligned throughout our business, from our frontline operatives through to our Executive Committee, ensuring that every employee is incentivised and rewarded to deliver the same objectives.
Although the structure of the 2025/26 bonus is the same as that of 2024/25, the new suite of ODIs set by Ofwat for AMP8 will have the effect of increasing the environmental proportion of the bonus, which means that 39% of the all-employee bonus in 2025/26 will be linked to ESG-related measures.
In addition, the long-term incentive plan (LTIP), which rewards senior management, was restructured last year so that 50% is linked to non-financial performance measures.
Alignment of priorities across the business is particularly important now, as our customers, communities and investors rightly expect us to increase our focus on sustainability and take decisions that prioritise people and the planet, as well as their own interests.
All-employee bonus
The annual all-employee bonus ensures that everyone – from our frontline operatives through to our Executive Committee– is incentivised and rewarded to deliver the same objectives.
60% of the bonus is based on non-financial performance measures, including Customer Outcome Delivery Incentives (‘ODIs’) performance, storm overflow reduction and our Environmental Performance Assessment (‘EPA’) rating.
Although the structure of the 2025/26 bonus is the same as that of 2024/25, the new suite of ODIs set by Ofwat for AMP8 will have the effect of increasing the environmental proportion of the bonus. This means that 39% of the all-employee bonus in 2025/26 will be linked to ESG-related measures.
You can read more in our Directors’ Remuneration Policy in the Severn Trent Plc Annual Report and Accounts 2024/25.
LTIP
The long-term incentive plan (LTIP), which rewards senior management, was restructured last year so that 50% is linked to non-financial performance measures.
Our Remuneration Committee reviewed the revised structure and determined that performance measures and weightings remain fit for purpose for the 2025 LTIP award.