Four metro mayors have written to Yorkshire Water’s chair to express "serious concerns" over reports of undisclosed extra pay to the chief executive via an offshore parent company.
Water regulator Ofwat is examining whether payments worth £1.3 million reportedly made to Nicola Shaw via the Jersey-incorporated company Kelda Holdings between April 2023 and March 2025 complied with rules banning bonuses for water company bosses.
The Government recently barred six water companies from paying bonuses to executives because of failings over pollution as part of its response to public outrage on issues including widespread sewage spills and rising bills.
Yorkshire Water was among six companies banned from paying bonuses.
Yorkshire’s four metro mayors – Tracy Brabin, Luke Campbell, Oliver Coppard and David Skaith – alongside the co-chairs of the Yorkshire Leaders Board asked chair of Yorkshire Water Vanda Murray for an urgent meeting to discuss the undisclosed payments to Ms Shaw, first reported by the Guardian.
In the letter, they called payments "wholly unacceptable" and demanded "clear answers" on behalf of Yorkshire’s customers and communities.
"As elected representatives of Yorkshire’s communities, we share the public dismay at these revelations," they wrote.
"The additional payments to Ms Shaw must be viewed against Yorkshire Water’s consistent pattern of poor performance."
The mayors said the concealment of payments to Ms Shaw from annual reports and her own public statements that she would decline bonuses highlight a "fundamental breach of trust".
"This contradiction between public statements and hidden payments is especially galling for customers who are being asked to pay more," they wrote.
The letter went on to cite the company being ordered pay £40 million for excessive sewage spills, while not one river in the region is considered to be in good overall health by regulators – and customers are set to see bills hiked.
Last week, Yorkshire Water was also fined £865,000 at Sheffield Magistrates’ Court for illegally discharging chlorinated water resulting in the death of local wildlife.
A spokesperson said: "We understand the strength of feeling on the items outlined in their letter and welcome the opportunity to meet with the local mayors and council leaders to discuss these in more detail."
