- Liv Garfield to step down from Severn Trent CEO role at the end of the year
- There are currently 12 female FTSE 100 bosses, but that number will dip to 10 in January when Severn Trent and GSK get new leaders
- The average tenure of a FTSE 100 female boss is currently 4.0 years, but that will dip to 2.8 in January (compared to 6.1 years across the index overall)
- 35 members of the UK’s leading stock index have a female chief financial officer, with three more ready to start (and one about to depart)
“Zoe Yujnovich’s arrival at National Grid this month took the total number of female FTSE 100 chief executives and chairs to 12, but the departures of Dame Emma Walmsley at GSK and now Liv Garfield at Severn Trent will trim the number back to 10 come January,” says AJ Bell investment director Russ Mould.
“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 4.0, compared to the index-wide average of 6.1 years.
Source: Company accounts
“Liv Garfield is not quite going out on a high in terms of Severn Trent’s share price, but the water utility is on course to record a tenth consecutive increase in its annual dividend and the payment will set another new peak in the current financial year.
Source: Company accounts, Marketscreener, consensus analysts' forecasts. Financial year to March.
“The shares did set a new high in 2022 but have pulled back marginally since. Higher interest rates from the Bank of England and higher yields on UK gilts have lessened the relative attractiveness of Severn Trent’s dividend yield relative to the returns on cash and government bonds, while the industry-wide rumpus over water leaks, spillages and pollution is ongoing.
Source: LSEG Refinitiv data
“In Ofwat’s water company performance rankings for 2024-25, Severn Trent was rated as ‘average’ overall but was ranked best when it came to supply interruptions and the regulator noted marked improvement in leakage in the year. Ofwat’s report did call for further improvement in 2025-26 in the number of pollution incidents, and Severn Trent has responded, judging by how management has raised its forecast for income from Outcome Delivery Incentives (ODIs) for the year to March 2026 alongside Wednesday’s first-half results. The utility now expects to receive at least £40 million in performance-related payments, compared to prior expectations of ‘at least £25 million.’
“Severn Trent is also showing its response to regulatory and public concern over water quality, leakage and pollution through substantial increases in capital expenditure during the new AMP regulatory cycle that runs from 2025 to 2030.
Source: Company accounts, Marketscreener, consensus analysts' forecasts. Financial year to March.
“Its customers, however, may be less pleased by the average bill increase permitted by Ofwat during the five-year period of more than 40%, especially as they see dividends to shareholders continue to rise.”
