Regulator probes £1.3m payment to Yorkshire Water chief

Ofwat reviews payments to Nicola Shaw amid mounting public concern over executive bonuses.

Regulator investigates £1.3m offshore payment to Yorkshire Water chief

Ofwat is examining £1.3 million paid to Nicola Shaw, chief executive of Yorkshire Water, through the company’s offshore parent, Kelda Holdings. This scrutiny follows revelations by the Guardian regarding the large payments, which have raised concerns about transparency and compliance with regulatory rules banning bonuses for water company executives. While Yorkshire Water asserts full compliance with Ofwat’s disclosure requirements, the payments, made by shareholders, have provoked public backlash amid ongoing issues of sewage pollution in British waters. Critics argue these payments undermine recent governmental efforts to limit executive compensation in the water sector. Recent statements from the Department for Environment indicate a strong stance against any attempts to bypass the rules.

The regulatory scrutiny of Shaw’s payments reflects growing public frustration over executive compensations in the water industry, especially in light of ecological concerns. Shaw’s prior decision to forgo a bonus was perceived as a move to align with customer sentiments, yet subsequent offshore payments complicate this gesture, leading to allegations of circumventing the spirit of the regulations. As water quality issues remain pressing, the unfolding situation could fuel further outrage among consumers and heighten calls for accountability in corporate governance within the utility sector.

Highlights

The outcome of this investigation could reshape public trust in utility governance.