London Super Sewer Chief Executive Nets £600,000 Pound Pay Rise Despite Project Cost Overrun

The chief executive of London’s Thames Tideway tunnel project has secured a substantial £600,000 pay increase, pushing his total remuneration to £2.5 million for the year ending March 2025, despite the project facing a £100 million cost escalation.

Andy Mitchell’s compensation package, detailed in Bazalgette Tunnel Limited’s latest accounts, represents a significant jump from his previous year’s earnings of £1.9 million. The rise was primarily attributed to a £500,000 boost in his retention bonus, which reached £1.5 million. His remuneration structure included a base salary of £550,000, a performance bonus of £423,000, and additional benefits and pension contributions valued at £21,000.

The 15.5-mile sewage tunnel project, running predominantly beneath the Thames, has experienced notable setbacks. Originally scheduled for completion in 2024, Covid-19 disruptions forced delays. The total project cost has now ballooned to £4.6 billion, marking a £1.1 billion increase from the initial £3.5 billion estimate.

Critics have questioned the scale of executive compensation, particularly as the project is funded through mandatory additions to customer bills. Luke Hildyard, director of the High Pay Centre, emphasised concerns about wealth concentration, suggesting that such substantial executive rewards in quasi-public service roles warrant reconsideration.

Tideway’s defence of the remuneration package highlighted the project’s complexity and achievements, noting its delivery within the original timeline and maintaining costs within the estimated range for bill payers at approximately £25 annually. The company spokesperson emphasised that the project has successfully protected the River Thames from millions of tonnes of sewage pollution.

Matthew Duncan, Tideway’s finance director, also saw his compensation increase, rising to £1.7 million from £1.3 million in the previous year, reflecting the organisation’s policy of rewarding senior leadership for project delivery milestones.