Yorkshire Water chief executive Nicola Shaw is stepping down on January 1, departing just 24 hours after the Environment Agency handed the utility its lowest possible one-star environmental rating. Shaw led the firm starting in 2022 and faced scrutiny over sewage incidents and past undisclosed payments.
The leadership change at Yorkshire Water arrives at a turbulent moment for the utility provider. Nicola Shaw will leave her post on January 1, making way for Nicola Medalova to take over as chief executive officer in the new year. Medalova is a chartered environmental health officer who previously worked for the National Grid and will join the company on Monday to begin a transition period.
Environmental Rating Downgrade and Pollution Figures
The departure follows a severe regulatory reprimand. On Thursday, the Environment Agency issued the company a one-star out of four rating, officially classifying it as a poorly performing company
. Regulators recorded 260 pollution incidents originating from Yorkshire Water operations over the course of 2025, marking the highest annual total for the utility since 2011.
That environmental blow compounds earlier financial penalties. In 2024, Ofwat announced a £47m fine against the company relating to historic sewage leaks.
Past Scrutiny Over Undisclosed Payments
During her tenure, Shaw drew intense public and regulatory criticism over executive compensation. Between 2023 and 2025, she received £1.3m in undisclosed payments. The payments came to light in August when the government banned Yorkshire Water and five other water companies from paying “unfair” bonuses to bosses.
Addressing the controversy late last year, Shaw acknowledged the transparency failure.
“Not being transparent” about receiving £1.3m in shareholder-funded payments across two installments had been a “mistake”, but had insisted those amounts were “not for me to decide”.
Nicola Shaw, departing chief executive
Leadership Transition and Incoming Strategy
In her departure announcement on Friday, Shaw reflected on her tenure leading the utility since 2022. It has been a privilege to lead Yorkshire Water and serve the people of Yorkshire,
she said in a statement. 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.
Incoming chief executive Nicola Medalova acknowledged the scale of the hurdles ahead as she prepares to step into the role permanently.
I am delighted to be joining Yorkshire Water and grateful to the Board for the opportunity to lead the business through its next chapter. Yorkshire Water faces huge challenges but also great opportunities for continued improvement and I look forward to working with Nicola Shaw, the leadership team and colleagues across the business as I get up to speed.
Nicola Medalova, incoming chief executive
