Welsh Water accused of planning to evade crackdown on executive bonuses

Martin Shipton

Dŵr Cymru/Welsh Water has been accused of planning to evade a crackdown on executive bonuses by awarding a hefty salary increase to its chief executive.

On the day that the group’s chief executive Peter Perry announced that he would be retiring from his post next Spring, the board members of Glas Cymru – the not-for-profit company that owns DCWW – held the first of two meetings to discuss a proposal by its Remuneration Committee to increase the chief executive’s pay.

‘Cynical’

Andrew Davies, a former Welsh Government Economy Minister who has been critical of DWCC’s financial and environmental performance, said: “The Remuneration Committee is recommending a one-off hike in the CEO’s basic salary as the Labour Government’s Water (Special Measures) Act 2025 has limited water companies’ ability to pay bonuses to its senior executives. It looks like a blatant and cynical attempt to get round the Government’s Act and policy.

“Two special meetings of the Members of Glas Cymru have been called to consider the Remuneration Committee’s proposal. The Members will nod it through of course: they always do.

“The justification that is given is the one they always use – that Welsh Water pays less than other water companies and they have therefore not been competitive and need to be so. But just compare Peter Perry’s remuneration with that of the CEOs of Transport for Wales and Cardiff City Council.

“This just shows how insular and entitled the water industry is. It’s not as if these exorbitant egregious levels of pay have produced stellar leadership and management.”

DCWW’s most recent accounts showed that Mr Price’s “aggregate emoluments” in 2023-24 totalled £489k.

In the same year, Transport for Wales CEO James Price’s salary was in the range £230k-235k, while on April 1 2023 Cardiff council’s chief executive Paul Orders’ salary was £196,744.

Chief executive 

Meanwhile Dŵr Cymru Welsh Water has announced that Peter Perry will retire as chief executive in spring 2026.

This brings to a close a career that began over 45 years ago in the water sector. Mr Perry joined Welsh Water as an apprentice in the early 1980s, progressing through a range of operational and leadership roles before becoming chief operating officer in 2013, managing director in 2017 and ultimately chief executive in 2020.

Since then, he has led the company through some of the most challenging and transformative times in its history. These include the Covid-19 pandemic, growing environmental pressures and sector-wide financial challenges, all while remaining focused on delivering for customers and communities across Wales and Herefordshire.

He has also played a key leadership role for the water industry at a UK level, leading on major contingency planning activities such as Brexit and the associated supply chain risk.

Under his leadership, Welsh Water said he has invested record levels in infrastructure and service improvements and now provides more support than ever to vulnerable customers. The company has, it claims, continued to prioritise the needs of customers, the environment and future generations by securing its most ambitious ever investment programme over the next five years.

‘Proud’

Commenting on his decision, Mr Perry said: “Welsh Water has been a part of my life since I left school. I’m incredibly proud to have spent my career in an organisation that plays such a key role in protecting public health and makes a genuine difference every single day.

“To have had the opportunity to lead the company as chief executive has been a huge honour as well as seeing the tireless work and sacrifices made by colleagues when trying to maintain our services, especially during some exceptional weather events. I’m proud of what we’ve achieved together and the strong foundations we’ve laid for the next five years and beyond. I have every confidence that Welsh Water will continue to go from strength to strength in the years ahead and I will continue to drive such improvement until my retirement.”

Chair of the Board, Jane Hanson CBE, said: “Peter’s story is truly inspirational – from apprentice to Chief Executive, his journey embodies everything that Welsh Water stands for in terms of values. His leadership has been defined by a deep understanding of the business, a genuine care for our people and customers, and a commitment to doing the right thing now and for the long term. On behalf of the Board and everyone at Welsh Water, I want to sincerely thank Peter for his exceptional service and wish him every happiness in his retirement.”

The search for a successor will begin immediately. An executive search and recruitment firm has been appointed and the role will also be advertised in relevant publications. Both internal and external candidates will be considered. The process is expected to take a number of months and Peter will remain in post throughout the appointment process.

In addition to being chief executive of Welsh Water, Peter is also currently Chair of Business in the Community Cymru, and is an advisor on the UK Resilience Forum, where he has chaired the UK water’s sector strategic Platinum Incident Management Group.