Yorkshire Water Chief Executive Nicola Shaw Steps Down After Downgrade

The Yorkshire Water boss resigns after the utility received the lowest possible environmental score from the Environment Agency. Nicola Shaw, who has served as chief executive since 2022, will officially vacate her position on 1 January. Her departure was confirmed on Friday, barely 24 hours following regulatory assessments that branded the utility a poorly performing company.

Nicola Shaw will step down as Yorkshire Water chief executive following severe regulatory downgrades and pollution scrutiny.

On Thursday, the Environment Agency published its assessment, awarding Yorkshire Water just one star out of four. The environmental watchdog revealed that the supplier was responsible for 260 pollution incidents in 2025, representing its highest recorded annual count since 2011. The poor rating arrives after years of mounting pressure on the business over its operational performance, including a £47 million financial penalty imposed by industry regulator Ofwat in 2024 over historic sewage spills.

Chartered environmental health officer Nicola Medalova has been named to succeed Shaw. Medalova, who previously held a post at National Grid, will join the utility on Monday to begin an interim transition phase before officially assuming the chief executive officer duties full time in the new year.

In her outgoing statement, Shaw remarked that leading the utility and serving the local population had been a privilege, adding that it was the right time to leave her role. Shaw noted that although a huge amount of work remains, she was proud of employee efforts to strengthen the company for future delivery across operations. Medalova stated that she was delighted to take the helm and thanked the board for the opportunity, acknowledging that Yorkshire Water confronts major challenges alongside significant opportunities for improvement.

Shaw's leadership also drew sustained criticism regarding executive compensation. The outgoing chief executive faced scrutiny after taking £1.3 million in shareholder-backed payments between 2023 and 2025. These undisclosed funds were revealed the previous August when ministers prohibited Yorkshire Water and five other water firms from awarding unfair bonuses to senior managers. In December last year, Shaw admitted that failing to be transparent about the two payments had been a mistake, though she maintained that the specific sums were not hers to determine.