Yorkshire Water's chief executive, Nicola Shaw, has announced she will step down on 1 January, a day after the Environment Agency gave the company its lowest possible environmental rating. She will be replaced by Nicola Medalova, a chartered environmental health officer who previously worked for National Grid.
The Environment Agency gave the firm one star out of four on Thursday, its lowest possible rating, and classed it as a "poorly performing company". The agency said Yorkshire Water was responsible for 260 pollution incidents in 2025, its highest total since 2011.
Shaw, who has led the company since 2022, faced criticism in recent years, including over pay, while the company came under scrutiny for its performance. In December last year she called “not being transparent” about receiving £1.3m in shareholder-funded payments between 2023 and 2025 a “mistake”, but insisted those amounts were “not for me to decide”. The previously undisclosed payments came to light the previous August, when the government banned Yorkshire Water and five other water companies from paying “unfair” bonuses to bosses. In 2024, Ofwat announced it was fining the company £47m for historic sewage leaks.
In a statement on Friday, Shaw said: "It has been a privilege to lead Yorkshire Water and serve the people of Yorkshire. Although there remains a huge amount of work to do, I am extremely proud of what our colleagues have achieved, putting the business on a stronger footing for delivery across all aspects of its work."
Yorkshire Water said Medalova would join the company on Monday as part of a transition period before taking on the chief executive role full time in the new year. Medalova said: "I am delighted to be joining Yorkshire Water and grateful to the Board for the opportunity to lead the business through its next chapter. Yorkshire Water faces huge challenges but also great opportunities for continued improvement and I look forward to working with Nicola Shaw, the leadership team and colleagues across the business as I get up to speed."
Analysis
Why This Matters
- The resignation follows a regulatory verdict that puts Yorkshire Water among the worst-performing water companies in England on environmental grounds.
- The £1.3m payments controversy shows how executive pay and transparency remain a live political issue for England's water industry, with the government already banning "unfair" bonuses.
- The leadership change raises questions about how the company will address its pollution record, the £47m fine and its regulatory standing.
Background
Yorkshire Water is one of England's regional water and sewerage utilities, serving communities across Yorkshire. The resignation is the latest development in years of public and regulatory pressure on England's privatised water companies over sewage discharges, pollution and executive pay.
Key Perspectives
Nicola Shaw: said leading the company had been a "privilege" and that it was "the right time" to leave, and has called the secrecy around her £1.3m payments a "mistake".
Nicola Medalova: said Yorkshire Water "faces huge challenges" but also "great opportunities for continued improvement".
Environment Agency: gave Yorkshire Water one star out of four, calling it a "poorly performing company" responsible for 260 pollution incidents in 2025, its highest total since 2011.
The government: banned Yorkshire Water and five other water companies from paying "unfair" bonuses to bosses after the payments became public.
What to Watch
- Whether the Environment Agency's one-star rating leads to further enforcement action against Yorkshire Water.
- How the leadership transition affects the company's response to the £47m Ofwat fine and its environmental improvement targets.
- Whether pressure over executive pay practices at Yorkshire Water continues under the new chief executive.
Checked
12 claims in this story checked against 1 source: 12 supported.
Show each claim
- SupportedYorkshire Water’s chief executive announced she would leave after the company received its lowest possible environmental rating.BBC News: “Yorkshire Water's chief executive has announced she is to step down, just 24 hours after the company was given the lowest possible environmental rating by the Environment Agency”
- SupportedNicola Shaw will leave on 1 January.BBC News: “Nicola Shaw, who has led the firm since 2022, will leave the role on 1 January”
- SupportedNicola Medalova will replace Shaw; she is a chartered environmental health officer who previously worked for National Grid.BBC News: “to be replaced by Nicola Medalova, a chartered environmental health officer who previously worked for the National Grid.”
- SupportedShaw said, “It has been a privilege to lead Yorkshire Water and serve the people of Yorkshire.”BBC News: “"It has been a privilege to lead Yorkshire Water and serve the people of Yorkshire."”
- SupportedThe Environment Agency gave Yorkshire Water one star out of four, its lowest possible rating, and classed it as a “poorly performing company”.BBC News: “On Thursday, the Environment Agency gave the firm one star out of four - its lowest possible rating - meaning Yorkshire Water was classed as a "poorly performing company".”
- SupportedThe Environment Agency said Yorkshire Water was responsible for 260 pollution incidents in 2025.BBC News: “The EA said Yorkshire Water was responsible for 260 pollution incidents in 2025”
- SupportedThe 260 incidents were the company’s highest total since 2011.BBC News: “which was its highest total since 2011.”
- SupportedShaw has led Yorkshire Water since 2022.BBC News: “Nicola Shaw, who has led the firm since 2022”
- SupportedShaw called not being transparent about receiving £1.3m in shareholder-funded payments a “mistake” and said the amounts were “not for me to decide”.BBC News: “In December last year Shaw said "not being transparent" about receiving £1.3m in shareholder-funded payments between 2023 and 2025 had been a "mistake" , but had insisted those amounts were "not for me to decide".”
- SupportedThe previously undisclosed payments came to light the previous August, when the government banned Yorkshire Water and five other water companies from paying “unfair” bonuses to bosses.BBC News: “The previously undisclosed payments had come to light the previous August when the government banned Yorkshire Water and five other water companies from paying "unfair" bonuses to bosses .”
- SupportedOfwat announced in 2024 that it was fining Yorkshire Water £47m for historic sewage leaks.BBC News: “In 2024, Ofwat announced it was fining the company £47m for historic sewage leaks .”
- SupportedMedalova said, “I am delighted to be joining Yorkshire Water and grateful to the Board for the opportunity to lead the business through its next chapter.”BBC News: “She said: "I am delighted to be joining Yorkshire Water and grateful to the Board for the opportunity to lead the business through its next chapter."”