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Rail bosses' bonuses prompt anger

Date: 27/6/2009 02:06:26

Search: Network Rail bonuses

The award of six-figure bonuses to Network Rail bosses has sparked widespread anger from passenger groups, politicians, rail regulators and transport unions.

Despite problems on the Virgin Trains-operated London to Scotland West Coast Main Line some senior directors at the rail infrastructure firm are getting a performance-related total bonus package of more than £300,000.

The bonuses are also being paid after the Office of Rail Regulation (ORR) saying Network Rail (NR) had presided over increases in delays caused by signalling problems.

The ORR, which had written to the remuneration committee which decides on NR bonuses urging them to pay bonuses that properly reflected performance, had also said NR's performance on the West Coast line had been "unsatisfactory". It added that the company was perceived by train and freight companies as being "bureaucratic and unresponsive".

ORR chief executive Bill Emery said that his office was ""surprised and disappointed" that the bonuses had not been "significantly reduced" this year.

The Liberal Democrats said passengers would be shocked to hear "rail bosses were being rewarded for failure" while rail union TSSA said the bonuses were "completely unjustified".

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The RMT transport union said the bonuses were "a kick in the teeth" for RMT members whose jobs were under threat, while rail customer watchdog Passenger Focus said the bonuses would seem "premature" to Virgin and London Midland passengers who were "still waiting for a reliable service to arrive" on the West Coast line.

Announced as NR published its annual report, the bonuses involve all of the 35,000 NR staff getting something - with the smallest bonus being £740.

NR chief executive Iain Coucher announced earlier that he would forego his annual bonus, but it was announced on Friday he would still get £150,000 as part of a three-year rolling incentive plan bonus.

NR group infrastructure director Peter Henderson will be receiving a £217,000 annual bonus plus £112,000 as part of the incentive plan, while former financial director Ron Henderson receives an annual bonus of £207,000 plus £112,000 under the three-year plan.

2012 © Press Association

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