Water boss 'already rejected' bonus before new law

The boss of Yorkshire Water said she had decided to turn her bonus down before new legislation was introduced that would prevent her from receiving it.

Nicola Shaw, who accepted a £371,000 bonus last year, said it would "not be appropriate" to accept the payment on top of her salary this year.

It comes as Yorkshire Water recognised it needed to "do better" when it came to its performance on pollution.

The water company was most recently prosecuted and fined £350,000 after a water course was polluted with sewage near York.

Under the new rules, which came into effect yesterday, six firms were banned from paying "unfair" bonuses to their executives this year.

It included Yorkshire Water, Anglian Water, Southern Water, Thames Water, United Utilities and Wessex Water.

The measures apply to water companies that do not meet environmental and consumer standards, are not financially resilient or have been convicted of a criminal offence.

A Yorkshire Water spokesperson said: "Our CEO, Nicola Shaw, had already made the decision that it would not be appropriate for her to receive an annual bonus this year due to the company's performance on pollution and a recognition that we need to do better for the communities we serve and earn trust.

"She has also taken the decision to waive her entitlement to an additional bonus that would have vested under our longer-term incentive scheme.

"We are determined to make improvements to our performance so we can deliver our part in creating a thriving Yorkshire, doing right for our customers and the environment."

The company received public backlash in December when its CEO took home a six-figure bonus despite plans to increase bills by 41%.

At the time, Nicola Shaw told the BBC the price hike would pay for supply upgrades and go towards reducing sewage discharges and storm overflows and her bonus came from shareholders rather than customers.

However, she previously declined a bonus in 2023, based on the company's record on river health.

Listen to highlights from West Yorkshire on BBC Sounds, catch up with the latest episode of Look North.