Severn Trent Regulatory News (SVT)

 Announcement

Re Severn Trent Board Composition

The Board of Severn Trent Plc today announces the following changes to the composition of the Board.

Mike McKeon, Chief Financial Officer, has given notice to the Board that he has decided to retire with effect from Spring 2015. Mike will be succeeded by James Bowling and a further announcement will be made in due course confirming James' start date. Mike will remain in post to ensure an orderly handover to James.

James is currently Interim Chief Financial Officer of Shire plc, where he has been since 2004, first as Head of Group Reporting and from 2008 as Group Financial Controller. Prior to joining Shire, James spent nine years at Ford Motor Company in various finance roles of increasing responsibility. James is a qualified chartered accountant, having started his career with Touche Ross. He brings to Severn Trent significant financial management, M&A and business transformation experience.

Liv Garfield, Chief Executive said

"I consider myself to have been extremely fortunate to have had Mike's fantastic support and wise counsel during this, my first year at Severn Trent and I will be truly sorry to lose him. As well as being a delight to work with, he has been instrumental in driving the success of Severn Trent since his appointment in 2005 and leaves us well positioned for the future.

However I am very excited that we have been able to attract such a high calibre person as James to Severn Trent. I am really looking forward to working with him to build on our success; he has a great track record at Shire and many qualities from which we will benefit."

 Mike McKeon said

"I have greatly enjoyed my time at Severn Trent and look back with satisfaction at what we have achieved. I know the future of the business is in good hands under Liv's leadership and I now look forward to my next challenges as I step into the portfolio world."

 James Bowling said

"I am delighted to be joining Severn Trent and the impressive team that Liv leads. It is an exciting time to be joining this outstanding company and I look forward to building on the solid foundation that Mike leaves."

To further drive the effectiveness of the board, it has also been agreed to reduce its size from eleven directors to eight, comprising two executive directors and six non executive directors, with effect from 23 January 2015.

Dr. Tony Ballance, Martin Kane and Andy Smith will therefore cease to be executive directors of Severn Trent Plc. However, Tony, Martin and Andy will remain members of the Severn Trent Executive Committee and retain their current executive responsibilities as Director of Strategy & Regulation, Chief Engineer and MD of Business Services respectively and will continue to play an important role in contributing to board discussion on their areas of remit.

Richard Davey, non executive director, senior independent director and chairman of the remuneration committee will retire at the same time, having served nine years on the Board.

Martin Lamb, non executive director, will succeed Richard as the senior independent director and Philip Remnant, also non executive director, will succeed him in the role of chairman of the remuneration committee.

Finally, Liv Garfield, Chief Executive, will today step down as a member of the nominations committee.

Andrew Duff, Chairman said

"I would like to add my, and the Board's, thanks to Mike. He has done a terrific job over almost ten years as Finance Director here and leaves with all of the Board's best wishes. We warmly welcome James to the Board and look forward to his contribution.

I would also like to thank Tony, Martin and Andy for their excellent contribution during their eight year tenure as Directors.

Richard has been an outstanding member of the Board and his contribution has been invaluable to Severn Trent. We have been very fortunate to have had a senior director of Richard's ability and experience, contributing to the growth and development of Severn Trent over so many years."

The Board confirms that there is no relevant information to disclose under Listing Rule 9.6 13R (2) to (6).

Enquiries:

Katharine Wynne / Martha Walsh Tulchan Communications 0207 353 4200

Notes to Editors

James Bowling's salary package is as follows:-

Base Pay

· Salary: £400,000

· Pension: 25% salary

Performance Related Pay

· Annual Bonus: up to 120% salary maximum

· Long Term Incentive: up to 80% salary

As a result of James resigning from his role as Interim Finance Director of Shire Plc, he has forfeited deferred remuneration. To help meet part of this loss he will be enrolled into a Severn Trent LTIP for vesting in 2015, 2016 and 2017, subject to confirmed employment and performance conditions. The performance conditions are the same as the awards made to other senior executives in Long Term Incentive Plans over the same periods.