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Union slams Yorkshire Water CEO’s bonus sacrifice as “hollow”

By Nagasunder in UK Business & Employment News, posted June 12, 2023

A decision by Yorkshire Water's CEO to forgo her annual bonus in response to public outrage over sewage pollution has been criticized as a "hollow" gesture by a prominent union.

The criticism comes as it was revealed she is set to receive a windfall of over £1 million from a previous role.

Nicola Shaw, who joined Yorkshire Water from National Grid last year, is expected to receive share awards worth £1.3 million from the energy network operator next month, according to the company's recently released annual report.

This amount is approximate twice the value of the bonus she declined, which union bosses say undermines the significance of her decision.

Gary Carter, the national officer at the GMB union, said: “Nicola Shaw painted herself as a martyr for giving up her Yorkshire Water bonus, despite the fact she was set to trouser more than a million quid in share options from a previous job.

“It’s hard to know where she gets the nerve, especially while many water workers are struggling to make ends meet. Refusing a bonus, while pocketing a fortune in the background, makes for a pretty hollow act of contrition.”

Last month, Shaw joined the CEOs of Thames Water and South West Water in publicly declaring their refusal to accept bonuses amidst widespread criticism of water companies' pollution records.

Shaw later expressed her understanding of people's anger over the issue and apologized on behalf of Yorkshire Water, vowing to make progress.

Her potential bonus at Yorkshire Water would have ranged between £600,000 and £800,000, in addition to her £574,000 salary.

The company also agreed to cover relocation expenses of up to £140,000 for Shaw, but the exact amount she received remains undisclosed.

Shaw's status as a "good leaver" with National Grid granted her entitlement to the share awards, given her strong performance and contributions to the company.

She previously received a separate share award of around £1.8 million from National Grid and earned £152,000 in fees and benefits from her role on the board of British Airways owner IAG.

Water companies in the UK have faced consistent criticism for discharging untreated sewage into rivers and seas.

While some companies have apologized and committed to investing £10 billion to reduce such spills, they have faced backlash for passing the costs onto customers.

Yorkshire Water responded to the controversy, clarifying that Shaw's payment from National Grid was unrelated to her work at Yorkshire Water and was fully disclosed.

The company emphasized Shaw's decision to forgo the bonus was driven by her strong concern for river health and her commitment to improving the company's performance.

This situation follows the recent scrutiny of Thames Water's CEO, who was accused of engaging in a shallow public relations stunt after declining a bonus while receiving additional payments totaling £726,000 alongside her £750,000 salary.

Nicola Shaw, who received a CBE for her services to transport, has had an extensive career in the transport industry, including serving as the CEO of the £6.2 billion High Speed One rail line and working for National Grid for six years.

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The ongoing controversy surrounding executive pay comes at a time when households are struggling to cope with rising energy costs, further fueling public dissatisfaction.

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