Ian McAulay, chief executive of Southern Water, will retire from the company by the end of 2022 after appointing a successor.
The outgoing chief executive said it was the “appropriate time” for the company to have a new leader and for him to step down.
McAulay, 56, joined the company in 2016 tasked with turning around the underperforming organisation. In his first year at the helm McAulay unearthed the extent of the misreporting scandal that ultimately led to record prosecutions by Ofwat and the Environment Agency.
After the publication of a damning report into what went on at the company during 2010-2017, McAulay focused on rebuilding the business with a new direction and revised ethos that included a whistleblowing policy and greater transparency throughout the organisation.
McAulay, said: “After more than 35 years of working in the UK water industry and across the world, I have now reached the point where it is right to retire from full time work. I do so both to commit to spending much more time with my family, and to hand over the leadership of Southern Water to a new CEO at the appropriate time. That time is in the year ahead, at the end of which we will have delivered a second year of record investment and be well underway with developing our plans for AMP8. It is right for my successor to finalise the development of the company business plan for AMP8, deliver the new regulatory settlement and lead the company into that period.
“My priority this year is to work with the board and leadership team to deliver Southern Water’s ambitious plans and ensure a smooth transition”.
Last year Australian investment vehicle Macquarie became Southern’s majority shareholder when it invested more than £1 billion to turnaround the business. Chief financial officer Sebastian Boelen departed in January this year as the first executive change since Macquarie’s acquisition.
Southern’s chair Keith Lough, added: “As Ian announces his intention to retire at the end of the year, I thank him for his five years of dedicated service to the reformation of Southern Water.
“Whilst we continue on our journey of improvement we do so with a deeply improved culture and we will continue to see the benefits of the measures he has put in place in our customer, operational and environmental performance into the future.”
The company said it has begun the process of selecting a new chief executive and will make an announcement later in the year.