Liv Garfield, Severn Trent’s chief executive, is to step down after 11 years at the helm, ending her tenure as the FTSE 100’s longest-serving female boss.
Severn Trent, the London-listed utility supplying water and sewage to over 4.7 million households and businesses across the Midlands and Wales, announced Ms Garfield will leave at the end of December.
She will be replaced by James Jesic, who is currently Severn Trent’s capital and commercial services director and managing director of Hafren Dyfrdwy Cyfyngedig in north east and mid-Wales.
Ms Garfield will stay with the business until the end of March next year to facilitate a smooth handover.
She is currently the longest serving female boss in London’s blue chip share index, followed by GSK chief executive Dame Emma Walmsley, who has notched up eight years heading the drugs giant.
Dame Emma is stepping down from GSK at the end of the year, to be replaced by chief commercial officer Luke Miels, which will bring the number of FTSE 100 female bosses down to 10.
Russ Mould, investment director at AJ Bell, said: “Those two are also the longest-serving female bosses in the index, and their departure will take the average tenure for a FTSE 100 female leader down to 2.8 years from four, compared to the index-wide average of 6.1 years.”
Ms Garfield’s departure plans were announced alongside half-year results showing pre-tax profits jumped by 60% to £307.8 million in the six months to September 30.
The group also hiked its annual outlook, saying it now expects performance incentives of at least £40 million against previous guidance for at least £25 million, which it said is driven by a strong performance in reducing leakage, storm overflow spills and pollutions.
Severn Trent is also cutting costs further while increasing its infrastructure renewals spending.
The results follow the group’s move to hike bills by an average of 21% in April, equating to a roughly £99 annual increase, with the average household now set to pay £556 over the course of the year.
Severn Trent said at the time that the sharp increase in bills would help fund about £15 billion in investment to upgrade its network of pipes, sewers and reservoirs over the next five years.
Ms 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.”
Christine Hodgson, chairwoman of Severn Trent, said successor Mr Jesic was a “home-grown leader who has already played a significant role in the success to date of Severn Trent”.
“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,” she said.
He will be paid £775,000 as a starting annual salary, against the £873,200 Ms Garfield is currently paid before benefits and bonuses.
Mr Jesic joined Severn Trent as a graduate in 2003 and has since worked across the “full breadth of the business”, according to the firm.
Water firms have been the subject of growing public outrage over rising bills at the same time as high levels of sewage pollution and executive bonuses in recent years.
Severn is among the better performing of the privatised water companies on environmental metrics in recent years and beat recent targets set by Ofwat, the watchdog said in October last year.
Severn said it 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.
