Water Regulator Scrutinises £1.3m Offshore Payments to Yorkshire Water CEO

Strategic Insights -

The UK water regulator, Ofwat, is examining payments worth £1.3m made to the boss of Yorkshire Water through an offshore parent company, following a Guardian investigation into the existence of these extra funds. The company's CEO, Nicola Shaw, received £1.3m from Kelda Holdings, a Jersey-incorporated company, between April 2023 and March 2025. The payments were only disclosed after the Guardian questioned the sums awarded, sparking outrage from campaigners.

Key Takeaways:

  • Yorkshire Water's CEO, Nicola Shaw, received £1.3m in payments from Kelda Holdings, an offshore parent company, between April 2023 and March 2025, bringing her total pay to over £3.8m over three years.
  • The payments were made through a Jersey-incorporated company, which is not publicly transparent, with the company refusing to provide the accounts for Kelda Holdings.
  • The bonus ban for water company bosses, introduced by the government in 2023, does not cover non-variable fees, which may include the payments in question.
  • Shaw previously announced that she would forgo a bonus of between £600,000 and £800,000, citing public outrage over sewage overflows in Britain's rivers and seas.
  • The Ilkley Clean River Campaign has written to the chair of Kelda Holdings and Yorkshire Water, Vanda Murray, criticizing the payments as undermining Shaw's previous gesture of turning down a bonus.
  • Yorkshire Water, which raised average annual household bills by 41% to £607, was one of the six companies banned from paying bonuses, but the offshore payments suggest that Shaw still made more than £1.3m during the 2024-25 financial year.

Statistics:

  • £1.3m: the value of payments made to Yardley Water's CEO, Nicola Shaw, from an offshore parent company (Kelda Holdings) between April 2023 and March 2025.
  • £3.8m: the total pay awarded to Nicola Shaw over three years, including the offshore payments.
  • £660,000: the annual fee paid to Shaw by Kelda Holdings for work on the company's behalf.
  • 41%: the increase in average annual household bills by Yorkshire Water.
  • May 2023: the month in which Nicola Shaw publicly turned down a bonus of between £600,000 and £800,000.

Sources:

  • Guardian investigation
  • Ofwat
  • Yorkshire Water
  • Department for the Environment, Food and Rural Affairs