Massive Pay Rise Amid Public Scrutiny
Andy Mitchell, Chief Executive of the London Thames Tideway “super sewer” project, has received a £600,000 pay hike, taking his total earnings for the 2024–25 financial year to £2.5 million — despite the project overrunning costs by another £100 million.
The announcement, disclosed in newly published accounts from Bazalgette Tunnel Limited (the company behind the Tideway scheme), has triggered widespread criticism, particularly as bill payers ultimately fund the project through mandatory water bill surcharges.
What Is the Tideway ‘Super Sewer’ Project?
The Thames Tideway Tunnel, often referred to as the “super sewer,” is a 15.5-mile, multibillion-pound infrastructure project designed to modernise London’s crumbling Victorian sewer system, originally engineered by Sir Joseph Bazalgette during the mid-19th century.
Plagued by overflows and sewage spills due to London’s tripled population, the existing system had become increasingly unfit for purpose. The Tideway tunnel is aimed at preventing millions of tonnes of raw sewage from spilling into the River Thames annually.
Originally due for completion in 2024, the project faced delays owing to the Covid-19 pandemic, and its total cost has climbed from an initial £3.5 billion to £4.6 billion.
Breaking Down the £2.5m Pay Package
Mitchell’s earnings for the year ending March 2025 comprise:
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Base salary: £550,000
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Performance bonus: £423,000
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Retention bonus: £1.5 million
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Pension/Benefits: £21,000
The bulk of the increase stems from a £500,000 boost to his retention bonus, intended to ensure project leadership continuity throughout the construction timeline.
Notably, this year’s total payout is slightly lower than the £2.7 million Mitchell earned in 2023 — yet the jump from £1.9 million last year remains significant and, to critics, unjustifiable amid a £100 million budget hike.
£100m Cost Hike Raises Eyebrows
The project’s latest financial report shows a £100 million rise in costs, pushing the total to £4.6 billion — well above the original forecast.
Though Tideway claims the overall spend remains within the estimated range disclosed to regulators, the overrun has only fuelled greater public resentment toward rising executive remuneration.
Adding to the controversy, Tideway Finance Director Matthew Duncan also received a £1.7 million compensation package, up from £1.3 million the year prior.
Customers Footing the Bill
Thames Tideway is funded through an annual surcharge on household water bills — currently about £25 per customer per year.
This method of financing, introduced to help secure investment in privately owned UK water infrastructure, has become increasingly controversial, particularly as executive bonuses climb while households grapple with higher utility bills.
“The fact that this massive pay rise comes from a project funded by customers — not profits — makes it even more tone-deaf,” said Luke Hildyard, Director of the High Pay Centre, a UK think tank focused on income inequality.
Public Response: “Prestige Shouldn’t Pay Millions”
Hildyard continued:
“The culture of excessive top pay and elite compensation in the UK is undermining living standards across the board. Projects like this — with quasi-public service status — should set a different example.”
He also suggested that many competent project managers could have delivered the scheme without multimillion-pound incentives, especially given the prestige and visibility associated with leading one of the UK’s most prominent infrastructure undertakings.
Company’s Defense: “World-Class Project” Justifies Rewards
A spokesperson for Tideway defended the executive remuneration, calling the project a “world-class engineering challenge”:
“Tideway’s remuneration reflects the complexity of the project and takes into account delivery milestones, safety, cost control, and sustainability.”
The company said the retention bonus was key to ensuring leadership continuity throughout the nine-year build, which has involved more than 25,000 workers.
“The tunnel is now operational, preventing millions of tonnes of sewage from entering the Thames. It’s a vital success,” the spokesperson added.
Infrastructure Must Balance Pay, Accountability & Public Trust
For executives overseeing public infrastructure projects — particularly those funded by mandatory consumer levies — the balance between fair compensation and public accountability is crucial.
Key Considerations for CEOs, Boards, and Regulators:
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Performance Pay Must Reflect True Performance: Bonuses must align with on-time, on-budget delivery — not just project completion.
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Retention Bonuses Should Be Proportional: Long-term incentives should not eclipse public expectations or affordability.
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Public Trust Is a Currency: In projects with public stakes, reputational equity is as valuable as engineering success.
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Transparent Pay Justification: Boards must disclose pay frameworks and rationale in simple terms accessible to the public.
As Britain’s infrastructure modernisation continues — from water to rail to clean energy — leaders must walk a fine line between rewarding leadership and respecting public contribution.
The Tideway “super sewer” may be cleaning up the Thames, but the stink around executive pay is far from washed away. As households cover rising costs and infrastructure firms reap the rewards, the spotlight on accountability, equity, and public value is sharper than ever.
Unless firms like Tideway reassess how they reward top brass, they risk flushing hard-earned trust — along with London’s waste — straight down the drain.