Yorkshire Water's chief executive, Nicola Shaw, has announced her resignation just one day after the company was awarded the lowest possible environmental rating by the Environment Agency. Shaw, who took leadership of the firm in 2022, will officially leave her post on January 1st. She will be succeeded by Nicola Medalova, a chartered environmental health officer with previous experience at the National Grid.
In a statement released on Friday, Shaw described her tenure as a privilege but noted that it was the right time to depart. Her departure follows intense scrutiny regarding the company's performance and her own financial dealings. Shaw has faced criticism for receiving £1.9 million in undisclosed payments between 2023 and 2026 from Yorkshire Water's parent company, Kelda Holdings. The firm stated these funds were intended for investor engagement and financial oversight.
The timing of the announcement coincides with a severe downgrade by regulators. On Thursday, the Environment Agency rated Yorkshire Water one star out of four, classifying it as a poorly performing company. This rating reflects 260 pollution incidents recorded in 2025, marking the highest total for the firm since 2011. Additionally, Ofwat announced a £47 million fine in 2024 related to historic sewage leaks.
Shaw addressed the controversy surrounding her compensation in December of the previous year, admitting that failing to be transparent about receiving £1.3 million in shareholder-funded payments was a mistake, though she insisted the amounts were not for her to decide. She received an additional £660,000 earlier this year, which Ofwat confirmed were not performance-related. These undisclosed payments came to light after the government banned Yorkshire Water and five other utilities from paying unfair bonuses to executives.
Nicola Medalova is set to join the company on Monday for a transition period before assuming the full-time chief executive role in the new year. In her own statement, Medalova expressed delight at the opportunity to lead the business through its next chapter, acknowledging the significant challenges and opportunities for improvement ahead.
Sources: BBC News UK.