Yorkshire Water chief executive Nicola Shaw is stepping down, a day after England's Environment Agency gave the firm its lowest rating, the BBC and the Mirror report. The agency gave the company one star out of four and called it a "poorly performing company," the outlets report.

Shaw, who has led the firm since 2022, will leave on January 1, the BBC reports. She will be replaced by Nicola Medalova, who used to work for National Grid and once sat on the company's board, the outlet reports. Medalova joins on Monday to learn the job first.

"It has been a privilege to lead Yorkshire Water and serve the people of Yorkshire," Shaw said, the BBC reports. She said it was the "right time" to go.

The BBC reports the agency found 260 sewage pollution incidents in 2025, the most since 2011. The Mirror reports 335 incidents, including 13 serious ones. The agency's report shows the larger figure also counts 75 incidents tied to water supply.

Shaw has faced criticism for taking £1.9 million in payments from the firm's parent company between 2023 and 2026 that were not made public at first, the BBC reports. In 2024, the water regulator fined Yorkshire Water £47 million over past sewage leaks, the outlet reports.

The agency rated eight of nine water firms in England as poor or needing to improve, the Mirror reports. Four got one star, including Thames Water and Southern Water, and only Severn Trent got four stars. Environment Secretary Angela Eagle has called water bosses to a meeting, the outlet reports.

What we know: Shaw will step down on January 1 after the firm got a one-star rating.
What we don't: Whether the rating played a part in her exit.