Yorkshire Water executive pay has sparked fresh scrutiny after revealing undisclosed bonuses. Nicola Shaw, the boss of one of Britain’s largest water suppliers, received an extra £1.3 million since 2023. Kelda Holdings, the offshore parent company registered in Jersey, paid this sum. Yet, Yorkshire Water did not initially disclose these payments in its annual report.
The payments totaled £660,000 over the 2023-24 and 2024-25 financial years. Yorkshire Water first refused to share details, claiming Kelda Holdings follows separate disclosure rules. Only after the Guardian pressed for transparency did the company reveal the amount. This secrecy frustrated MPs and customers alike.
Yorkshire Water insists it follows all rules set by the water regulator Ofwat. The company says shareholders, not customers, made these extra payments. However, parent companies like Kelda Holdings do not have to disclose executive pay publicly. Jersey’s offshore secrecy laws allow this lack of transparency.
Water companies faced fierce criticism in recent years. Outrage grew as sewage spills polluted rivers and seas while bills rose. Executives’ pay packages expanded despite this. Even after the government banned bonuses for companies guilty of serious environmental breaches, executive pay continued increasing.
Yorkshire Water paid a £40 million penalty for storm overflow spills in March. It also paid an £850,000 fine for pumping chlorinated water into a stream in 2017. The union representing water workers called out these secret payments. GMB’s Gary Carter said this practice worsens public distrust.
Yorkshire Water’s accounts showed Shaw’s pay dropped by nearly a third, from over £1 million to £689,000 in 2024-25. However, the accounts also noted that Shaw and the CFO, Paul Inman, received extra pay from Kelda Holdings. Kelda Holdings’ offshore status keeps this remuneration hidden.
Singapore’s government owns a third of Kelda Holdings, while investors from the US, Germany, and Australia hold the rest. Lack of transparency prevents MPs and customers from knowing if Shaw’s pay increased despite the bonus ban. The company says Shaw’s offshore pay did not link to performance bonuses but withheld Kelda’s financial statements.
Altogether, Shaw earned £1.7 million in 2023-24 and £1.3 million in 2024-25 from Kelda Group. Inman earned £440,000 from Kelda Group in 2024-25, in addition to his £662,000 salary.
A Yorkshire Water spokesperson defended the payments, explaining Shaw’s investor-related work should not come from customer funds. Shareholders covered the £660,000 fee in 2024-25 for managing Kelda Group affairs. The spokesperson highlighted Shaw’s leadership secured £500 million in investments for Yorkshire Water, with another £600 million planned by March 2027.
York Central MP Rachael Maskell criticized the secrecy, saying people expect better transparency when paying their water bills. She argued this case shows why water services should return to public ownership. Maskell hopes upcoming audit reforms will ensure clearer governance in utility companies.
The controversy over Yorkshire Water executive pay highlights ongoing tension between corporate secrecy and public accountability. Many call for stronger transparency to restore trust in vital public services.
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