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Rail chief gives up annual bonus | Rail chief gives up annual bonus |
(about 4 hours later) | |
Network Rail's chief executive is to give up his annual bonus for this year, saying he does not want it to cloud discussion of the firm's performance. | Network Rail's chief executive is to give up his annual bonus for this year, saying he does not want it to cloud discussion of the firm's performance. |
But other members of the Network Rail executive committee are still being considered for payments which could total hundreds of thousands of pounds. | But other members of the Network Rail executive committee are still being considered for payments which could total hundreds of thousands of pounds. |
And Iain Coucher will still be paid for the company's long-term performance. | And Iain Coucher will still be paid for the company's long-term performance. |
Network Rail insists it has hugely improved the railways and executives should be rewarded for the achievement. | Network Rail insists it has hugely improved the railways and executives should be rewarded for the achievement. |
'Toxic' | 'Toxic' |
A spokesman for Network Rail said Mr Coucher regarded bonuses as "toxic", and that the "well of public opinion had been poisoned by the criticism of big executive payments". | A spokesman for Network Rail said Mr Coucher regarded bonuses as "toxic", and that the "well of public opinion had been poisoned by the criticism of big executive payments". |
He was awarded £306,000 last year as part of a package of bonuses for executives totalling £734,000. This year he has told the company's remuneration committee not to consider him for the annual bonus. He said it was a personal decision. | He was awarded £306,000 last year as part of a package of bonuses for executives totalling £734,000. This year he has told the company's remuneration committee not to consider him for the annual bonus. He said it was a personal decision. |
NETWORK RAIL 20,000 miles of track1,000 signal boxes40,000 bridges and tunnelsOperates 18 major stationsCarries 3m passengers per day32,000 employees Profile of Network Rail | NETWORK RAIL 20,000 miles of track1,000 signal boxes40,000 bridges and tunnelsOperates 18 major stationsCarries 3m passengers per day32,000 employees Profile of Network Rail |
Last year he was also awarded £214,000 under the Long Term Incentive Plan. If the committee makes a further award this year, Mr Coucher will take it. | Last year he was also awarded £214,000 under the Long Term Incentive Plan. If the committee makes a further award this year, Mr Coucher will take it. |
The executives who could get payments are group infrastructure director Peter Henderson, operations director Robin Gisby, infrastructure investment director Simon Kirby, and planning director Paul Plummer. | The executives who could get payments are group infrastructure director Peter Henderson, operations director Robin Gisby, infrastructure investment director Simon Kirby, and planning director Paul Plummer. |
The company's entire workforce is expected to receive bonuses of at least hundreds of pounds. The announcement is due in the next few months. | The company's entire workforce is expected to receive bonuses of at least hundreds of pounds. The announcement is due in the next few months. |
Network Rail is a not-for-profit company and its senior managers cannot be given the sorts of shares options offered in the private sector. | Network Rail is a not-for-profit company and its senior managers cannot be given the sorts of shares options offered in the private sector. |
It is a condition of the company's operating licence that it offers an incentive scheme and it has argued strongly that the pay-outs encourage executives to hit performance targets. | It is a condition of the company's operating licence that it offers an incentive scheme and it has argued strongly that the pay-outs encourage executives to hit performance targets. |
FROM THE TODAY PROGRAMME More from Today programme | |
Most of those targets are being met, including for train delays and safety. But it is understood the company will confirm in the next few months that one has not - to reduce the company's costs for replacing track and other aging infrastructure. | Most of those targets are being met, including for train delays and safety. But it is understood the company will confirm in the next few months that one has not - to reduce the company's costs for replacing track and other aging infrastructure. |
Network Rail has also been criticised this year for the disruption caused by engineering work on weekends and bank holidays. | Network Rail has also been criticised this year for the disruption caused by engineering work on weekends and bank holidays. |
Mr Coucher may take future payments | Mr Coucher may take future payments |
The Office of Rail Regulation has ordered the company to cut engineering disruption by 21% over the next five years. | The Office of Rail Regulation has ordered the company to cut engineering disruption by 21% over the next five years. |
And in January a string of power problems resulting from engineering work on the West Coast main line caused repeated hold-ups for passengers. | And in January a string of power problems resulting from engineering work on the West Coast main line caused repeated hold-ups for passengers. |
The rail unions have also attacked the company's decision to delay some track replacement to save money. | The rail unions have also attacked the company's decision to delay some track replacement to save money. |
Executives at Network Rail say this is a deliberate decision. The work is being put on hold until new engineering equipment can be introduced which will allow the job to be done more cheaply. | Executives at Network Rail say this is a deliberate decision. The work is being put on hold until new engineering equipment can be introduced which will allow the job to be done more cheaply. |
The company is confident its knowledge of the state of the track and signalling is good enough to be sure that not replacing it will not pose any safety risks. | The company is confident its knowledge of the state of the track and signalling is good enough to be sure that not replacing it will not pose any safety risks. |
Network Rail insists it has hugely improved the condition of the railways since taking over from its predecessor Railtrack, and its executives should be rewarded for the achievement. | Network Rail insists it has hugely improved the condition of the railways since taking over from its predecessor Railtrack, and its executives should be rewarded for the achievement. |