Yorkshire Water CEO's Secret Payments Exposed

Strategic Insights -

Yorkshire Water's CEO, Nicola Shaw, received two secret payments worth £660,000 each for the 2023-24 and 2024-25 financial years, bringing her total remuneration to over £3m. The payments were not disclosed in the company's annual report and were only revealed after an investigation by The Guardian. The water industry regulator, Ofwat, is now investigating whether the payments breach the government's bonus ban. The revelation has sparked outrage among Labour MPs, who have written to Yorkshire Water's chair demanding answers.

Key Takeaways:

  • Nicola Shaw, CEO of Yorkshire Water, received two secret payments worth £660,000 each for the 2023-24 and 2024-25 financial years from Kelda Holdings, the company's Jersey-registered parent.
  • The payments were not disclosed in Yorkshire Water's annual report and were only revealed after an investigation by The Guardian.
  • The water industry regulator, Ofwat, is investigating whether the payments breach the government's bonus ban.
  • Labour MPs have written to Yorkshire Water's chair demanding answers and accusing Shaw of "disgraceful" and "a betrayal of public trust."
  • The payments bring Shaw's total remuneration to over £3m, at a time when serious pollution incidents have trebled and bills are set to increase by 41 per cent over the next five years.
  • Shaw had previously stated that she would decline bonuses in light of poor environmental performance, but has since accepted the secret payments.
  • The payments have been described as "exactly why public confidence in water companies is at rock bottom" by Bradford West MP Naz Shah.
  • Mayor of West Yorkshire Tracy Brabin has expressed concerns that the undisclosed fees are not transparent and have not been communicated effectively to the public.

Statistics:

  • £1,320,000: Total secret payments received by Nicola Shaw between 2023-24 and 2024-25.
  • >£3m: Total remuneration of Nicola Shaw over the last two financial years.
  • 41%: Increase in water bills expected over the next five years.
  • 29%: Current increase in water bills in Yorkshire.
  • 2022: Year from which Labour MPs are demanding that Yorkshire Water disclose all executive payments made via Kelda Holdings.

Sources:

  • The Guardian (no date provided)
  • The Yorkshire Post (no date provided)
  • Bradford West MP Naz Shah (no date provided)
  • Mayor of West Yorkshire Tracy Brabin (no date provided)
  • Yorkshire Water (no date provided)