SEVERN TRENT’S finance director has fallen victim to the desire of Colin Matthews, the new chief executive, for a reinvigorated management team.

Mark Wilson, who took over as group finance director last September after ten years at the utility’s water company, will leave Severn Trent at the end of the year.

A company spokesman said yesterday that Mr Wilson’s departure was “board-driven” but that he “understands and accepts the logic”.

“The board feels that going forward the skillset will be enhanced with a pure finance director . . . rather than Mark’s broad-based skills,” the spokesman said.

Previously, Mr Wilson had worked on regulatory issues and IT and his skills were particularly useful last year when the group went through its five-year review by Ofwat, the water regulator. However, the spokesman said the board now wanted a finance specialist.

Since joining Severn Trent as chief executive-designate in September last year, Mr Matthews, formerly chief executive of Hays, the recruitment business, has made four key appointments.

He was instrumental in choosing Andy Smith to become the group’s new human resources director in January.

Mr Matthews took over as chief executive in February and a month later appointed Tony Wray as managing director of Severn Trent Water, which provides 75 per cent of the group’s profits.

Johan Schmidt joined the group as director of strategy in May and this month Mr Matthews appointed Tony Ballance as regulation director at Severn Trent Water.

Sir John Egan became the group’s chairman in January.

The spokesman said that the group’s search for a new finance director began yesterday. He said that Mr Wilson would receive some contractual entitlement but that the level of his pay-off would not be announced until the group’s annual results are released in June next year.

Mr Wilson was paid a £275,000 basic salary for the 12 months beginning April 1 and was entitled to a bonus of up to 50 per cent of his basic salary.

At its annual results last month Severn Trent revealed a 14 per cent fall in full-year pre-tax profits to £217 million after the company was hit by a £67.7 million exceptional charge towards the £309 million FRS17 deficit in its four final-salary pension schemes. The schemes, which have 16,000 members, are now closed except for a “module” of one scheme, with 300 members, which is used to attract new managers below director level.

Mr Matthews is still looking at whether to sell any of Severn Trent’s non-water businesses. The group also owns Biffa, the waste management business.

At Hays he played a large part in dismantling the group.

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