Nicola Shaw is stepping down as chief executive of Yorkshire Water, less than 24 hours after the Environment Agency handed the company its lowest possible environmental rating. Shaw, who has led the water firm since 2022, will leave her role on January 1 and will be succeeded by Nicola Medalova, a chartered environmental health officer who previously worked for National Grid.
Lowest environmental rating
The watchdog gave Yorkshire Water one star out of four on Thursday, classifying it as a "poorly performing company". The Environment Agency said the firm was responsible for 260 pollution incidents in 2025, its highest annual total since 2011.
Shaw has also faced criticism over her pay, including £1.3 million in previously undisclosed payments received between 2023 and 2025. The payments came to light in August last year, after the Government banned Yorkshire Water and five other water companies from paying what it described as "unfair" bonuses to bosses.
Departure announcement
In a statement announcing her departure on Friday, Shaw said it had been a "privilege" to lead the company, but that she believed it was "the right time" to leave. She 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 over as chief executive 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."
Previous penalties
In 2024, water regulator Ofwat announced a £47 million fine against Yorkshire Water over historic sewage leaks. In December last year, Shaw admitted that "not being transparent" about the payments had been a "mistake", although she insisted the amounts were "not for me to decide".
The company has not said that the environmental rating was the reason for her departure.
