Rail boss defends extra bonus plan
Network Rail members have approved a fresh lucrative bonus package for its top directors - despite fierce criticism from unions about the firm's performance.
The move will see five executives to share a pot of £2 million - officially called the Long Term Incentive Plan - which will only be paid out if key targets are met by 2015.
But should bosses meet those goals they will scoop the windfall on top of their six figure salaries and an annual scheme worth up to £1.236 million.
Network Rail's 44 members, the equivalent of shareholders, backed the long term bonus at its meeting in Cardiff - despite being urged by protesters outside to vote against the scheme.
The Transport Salaried Staffs Association's (TSSA) described the decision as "rewarding failure" amid concerns about service punctuality, rising train fares and a number of rail-related deaths.
But Network Rail chairman Richard Parry-Jones, who is not entitled to the bonus package, insisted the firm had made exceptional progress over the past 12 months. He said challenges facing the organisation have been passenger numbers rising to 1.5 billion on a network and carrying out £4.4 billion worth of improvement on "Victorian" rail network.
"We have had another solid year of progress and we intend to continue on this path," he added. "Network Rail executives are rewarded only when exceptional performance exceeds tough targets, which have been approved by our members through an open and transparent process. If targets are not met, or safety comprised, no bonuses are made."
Network Rail's five executive directors are appointed by the organisation's 44 members.
Chief executive David Higgins is the firm's top earner with his £577,000 salary, followed by finance director Patrick Butcher on £394,000 and the £371,000 annual wages of operations manager Robin Gisby and projects boss Simon Kirby. The lowest earner of the five is strategy director Paul Plummer, who earns £348,000 per annum.
TSSA's general secretary Manuel Cortes said the union was bitterly disappointed by the plan. He said: "Once again public members of Network Rail have put the interests of bosses ahead of passengers. These bosses will be on board a very lucrative gravy train while the poor passengers pay through the nose with annual above-inflation fare rises."
