UNITED Utilities yesterday confirmed that Philip Green will step down as the water company’s chief executive next spring.

He will be replaced by Steve Mogford, who is currently chief executive of SELEX Galileo, an Essex based electronics manufacturer, owned by the Italy’s Finmeccanica.

Mr Green, who has been in the job five years now, may also walk away with a £4m share bonus, which comes on top of a £1.7m shares pay out he received last year.

Mr Mogford will become chief executive on March 31. He was previously the chief operating office and board member at BAE Systems.

John McAdam, chairman of United Utilities, said: “I am delighted to welcome Steve to United Utilities. We are appointing a strong chief executive with the strategic and operational capability to lead United Utilities through the next stage of its development.

“We have a clear plan to invest a record £3.6bn in the North West over the next five years and Steve is the right man to lead that investment programme. We look forward to working with him.”