Yorkshire Water is facing renewed criticism after it emerged that Chief Executive Nicola Shaw received more than £1 million through an offshore company - a move branded "immoral and unjustifiable" by local councillors and campaigners.
The payment, listed under “group services” for parent company Kelda Holdings, was revealed in Ofwat’s latest Executive Pay Assessment report.
While the arrangement appears to comply with company law, it has prompted questions about transparency and fairness at a time when customers are facing steep bill increases and Yorkshire’s rivers are struggling with record levels of sewage pollution.
The Ofwat report, published this week, noted that around £4 million in potential bonuses were blocked across the sector — a decision highlighted in the regulator’s press materials as evidence of tougher scrutiny.
However, critics say that focus masks deeper regulatory failures and a lack of clarity around how senior pay at Yorkshire Water is structured.
Councillor Andy Brown, who represents Aire Valley and speaks for the North Yorkshire Green Party, described the arrangement as “immoral and unjustifiable.”
He said:
“The initially concealed payment of over a million pounds to the Chief Executive of Yorkshire Water via an offshore business for obscure services may be legal but it is immoral and unjustifiable.
"If Yorkshire Water and its Chief Executive think that it is acceptable to put up customers' bills whilst making payments that show utter disregard for the feelings of their customers then they are not fit to manage a public service.
"I call on the Chief Executive to resign in shame and the company to be so tightly regulated that such practices can never happen again.”
Councillor Kevin Foster added that the controversy strengthens the case for public ownership of essential utilities.
He said:
“During the general election, I strongly campaigned for our water authorities to return to public ownership, and this situation shows exactly why.
It’s shocking that a CEO can be rewarded for poor performance while local people are dealing with the consequences - and it’s an insult to groups like Save Our Swale, Nidd Action Group and the Aire Rivers Trust, who are working so hard to clean up our rivers.”
Yorkshire Water has already been barred from paying bonuses this year after Ofwat found it guilty of a Category 1 pollution offence and breaches of its sewer duties.
The company was initially fined £36.9 million, though the regulator accepted £40 million in company undertakings “in lieu of penalty.”
Meanwhile, customers are preparing for one of the steepest water bill increases in the country. According to consumer watchdog CCW, Yorkshire Water’s average household bill will rise by 29% in 2025–26 - from £467 to £602.
Sewerage charges are expected to climb by between 35% and 44%.
Yorkshire Water has not yet issued a response to the calls for Nicola Shaw’s resignation.
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