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Rail bosses rule out bonuses for second year
Bosses at Network Rail have decided not to take any bonuses and to allocate the money to safety improvements instead, it was announced.
Executives had been facing increasing political pressure not to receive any extra money this year in the wake of the row over bonuses for banking and other bosses.
The issue was due to be discussed on Friday at a Network Rail (NR) meeting, which the board is now recommending should be adjourned.
NR said in a statement: “The board of Network Rail has decided to recommend to its members that this Friday’s meeting be adjourned. The board will take the opportunity to reflect further on how to incentivise performance in the company against the backdrop of the current context.
“It will continue to consult the Secretary of State on wider issues of governance in advance of the Government’s command paper.”
Transport Secretary Justine Greening had previously announced that she would attend this week’s meeting and vote against the bonus payments.
Six NR executives are affected by the announcement, although sources stressed that no decision had even been taken on this year’s award. The executives did not receive a bonus last year either. Its chief executive Sir David Higgins is paid £560,000 a year.
Manuel Cortes, leader of the TSSA rail union, welcomed the decision. “We said last week that it beggared belief that NR could be talking about a multimillion, long-term bonus scheme within days of admitting criminal behaviour over the deaths of two schoolgirls at Elsenham six years ago.
“That tragedy only happened because it refused to spend £2m on a new bridge at the level crossing despite an internal safety report demanding such action.
“This decision is sadly too little, too late for the parents of the girls who tragically died. But we welcome it as the first step in the direction of the directors starting to put safety and the passengers ahead of their own handsome rewards.”
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