The report also confirmed the company failed to deliver five projects in west Leeds, which formed part of a list of legally required environmental schemes.
It said customer satisfaction fell sharply after bills rose by 30% and hosepipe restrictions were introduced.
The company said it had “worked hard” to improve performance for customers.
It said it had increased support for customers facing higher living costs, providing £70m in assistance to 246,000 households and adding 80,000 people to its priority services register.
The report also highlighted areas of progress, including improved leakage performance and a reduction in storm overflow spills.
It said it had delivered several environmental schemes and was expanding its use of operational intelligence to predict and prevent pollution as part of a wider £8.3bn programme.
In response to its chief executive’s additional payment, Yorkshire Water said the payment was made by shareholders in its parent company and was separate from its own performance-related pay.
In addition, the company said it was “disappointed” it would receive a downgrade in the Environment Agency’s Environmental Performance Assessment from its current two-star rating when the rankings are published in October.
However, it recognised its environmental performance was “not where it needs to be and we accept there is more to do, especially on pollution”.
It added: “Improvement on pollution will take time given the scale of new infrastructure that is needed, but we have the right plan in place and by 2030, we will have reduced pollution incidents and delivered significant improvements to river health.”
