In a stunning display of coincidental timing, Yorkshire Water's chief executive Nicola Shaw announced she is stepping down just 24 hours after the Environment Agency slapped the company with its lowest possible environmental rating. Shaw, who has led the firm since 2022, will leave on 1 January, to be replaced by Nicola Medalova, a chartered environmental health officer and former National Grid employee. Because nothing says "fresh start" like a new CEO arriving after the old one was essentially chased out by a one-star review.
Shaw's departure comes after the Environment Agency gave Yorkshire Water a single star out of four, classifying it as a "poorly performing company." The EA noted the firm was responsible for 260 pollution incidents in 2025 - its highest total since 2011. That's not a record anyone wants to break, yet here we are. In 2024, Ofwat fined the company £47m for historic sewage leaks, because apparently, polluting streams is just part of the business model.
Shaw's tenure was also marked by controversy over £1.9m in undisclosed payments she received between 2023 and 2026, made by parent company Kelda Holdings for "investor engagement" and "financial oversight." In December last year, Shaw admitted that "not being transparent" about £1.3m in shareholder-funded payments across two instalments had been a "mistake," but insisted those amounts were "not for me to decide." She received a further £660,000 earlier this year. Ofwat clarified the payments were not performance-related - which is probably for the best, given the performance in question.
In her statement, Shaw called it a "privilege" to lead the company and said it was the "right time" to leave. She expressed pride in putting the business on a "stronger footing," presumably the kind of footing that still results in 260 pollution incidents. Her replacement, Medalova, joins on Monday for a transition period before taking over fully in the new year. She said she is "delighted" and acknowledged "huge challenges" - an understatement that could win awards.
Politicians wasted no time weighing in. Liberal Democrat MP Tom Gordon said Shaw should have stepped down "much earlier," adding "Good riddance" and accusing her of overseeing "abysmal management" while receiving an "eye-watering salary." Labour MP Judith Cummins said the company needs "more than a change of leadership" but a "complete change of direction," noting customers have faced "skyrocketing bills, record pollution incidents, and a plummet from 'good' to the worst possible one-star environment rating." Conservative MP Robbie Moore said the resignation "could not have come quick enough" and has requested an urgent meeting with Medalova.
Campaigners were similarly unimpressed. Chris Stewart of York group Ouse It Lose It said the new CEO must address "failures in the system" and called the resignation a "shocking indictment" of the company's performance. Naomi Tilley of Surfers Against Sewage said "systematic change" is needed, noting that "regardless of who the CEO is, there's sewage entering the sea and the water companies are failing." She added that the whole system is broken and fundamental change is required - because while companies are set up for profit, pollution will never be curbed.
So, Yorkshire Water gets a new boss, a one-star rating, and a hefty fine. The only thing missing is a partridge in a pear tree - though given the state of the rivers, we wouldn't trust the pear tree either.
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