Bosses at Scottish Water received over £250,000 in bonuses in the past year, drawing criticism from political figures who have labeled the payments a "reward for failure." The public body's latest accounts reveal that chief executive Alex Plant, chief financial officer Alan Dingwall, and chief operating officer Peter Farrer were collectively awarded £258,000 in performance payments.
Alex Plant received a bonus of £115,000 in addition to his £315,000 salary, bringing his total remuneration package, including pensions and benefits, to £432,000. Alan Dingwall, whose annual salary is £217,000, was awarded a £79,000 bonus, with his total compensation reaching £363,000. Peter Farrer, earning £176,000 annually, received a £64,000 bonus, resulting in a total package of £280,000.
These bonuses were distributed as water bills increased by 8.7 percent in April, costing the average household an additional £42 per year. Concurrently, concerns persist regarding sewage discharges into Scotland's waterways.
The Liberal Democrats accused the Scottish Government of "rewarding their water company for failure." MSP Sanne Dijkstra-Downie stated that Scottish Water is issuing substantial bonuses to executives overseeing sewage dumping and increased customer charges. She highlighted that sewage dumping is currently governed by outdated regulations, which a government watchdog has deemed inadequate. The Scottish Liberal Democrats have proposed a Clean Water Act to modernize the sewage network and address dumping practices.
Dame Jackie Baillie, acting leader of Scottish Labour, described the bonuses as "eye-watering sums" and stated that it is "not right that rich executives are handed massive payouts" while many Scots struggle with basic living costs. Scottish Labour has advocated for an end to above-inflation water bill increases and a cap on executive bonuses at Scottish Water.
A spokesperson for Scottish Water defended the payments, explaining that performance-related payments are part of an organization-wide scheme contingent upon meeting performance targets. The company reported its second-best year for operational performance in 2025/26, including record customer satisfaction, the lowest number of serious pollution incidents to date, high drinking water quality, and progress on its largest-ever investment program.
A Scottish Government representative emphasized that Scottish Water operates under a stringent, independent economic regulatory framework. The government expects the company to exceed efficiency targets set by its regulator. To attract and retain skilled personnel necessary for business operations and improvements, Scottish Water must remain competitive with the private sector. Bonuses, the spokesperson added, are only issued when demanding, independently verified targets are surpassed. Furthermore, the remuneration packages for the chief executive and senior team, encompassing salary and bonuses, are reportedly significantly lower than those at comparable utility companies in the private sector.