‘Rewarded for failure’: Network Rail boss leaves with £1.6m pay-off

Iain Coucher received a compensation package of £1,075,000, salary of £359,000, pension of £214,000 and benefits of £9,000, NR said in its annual report.

The leader of the Transport Salaried Staffs Association (TSSA) said Mr Coucher had been “rewarded for failure” on a grand scale, predicting that rail passengers would be “furious”.

NR said the compensation payment included contractual payments for pay in lieu of notice (12 months salary) and a negotiated settlement to close out potential long-term incentive plan award rights.

The annual report also showed that four current executives received more than £280,000 between them in the last financial year under the long-term incentive plan, ranging from £61,725 to £90,723.

Mr Coucher stepped down as chief executive last September after three years in the job, having previously been deputy chief executive.

TSSA general secretary Gerry Doherty said passengers were paying the highest fares in Europe, on the most over-crowded network, while Mr Coucher had “transformed” himself into a multimillionaire.

“Passengers will be furious that he has walked away from this job with over £1 million of taxpayers’ money after years of failure.

“He earned over £8 million, thanks to a generous bonus scheme he helped set up, while the fare-payer now pays twice as much for a ticket as passengers in the rest of Europe.

“Not only do we have highest fares in Europe, NR is 40% less efficient than other European railways despite having received over £30 billion of taxpayer support while Mr Coucher was running the network.”

Rick Haythornthwaite, NR’s chairman, said: “The past year has seen some significant progress in driving down the costs of running the rail network but we know that we still have a great deal to achieve.

“Under our new chief executive, David Higgins, we need to continue to focus intensely on delivering an even better value, more punctual railway for our customers and for passengers.”

Mr Coucher said: “The payment I received upon leaving Network Rail reflected the fact that whilst I was prepared to work my full notice period, the company did not want me to. This triggered a payment in line with my contract in lieu of this notice period and bonuses I would have received.

“I fully understand the strong sentiments that issues around executive remuneration have begun to arouse in recent years. But I am proud of my role in the transformation of Britain’s railways which are unrecognisably safer, more punctual and more efficient than when I was asked to help rescue Railtrack and establish Network Rail.”