Bonuses significantly reduced for Network Rail directors

Friday 23 May 2014

Bonuses significantly reduced for Network Rail directors

Region & Route:: National

Network Rail’s remuneration committee has decided to award bonuses significantly below target to the company’s executive directors for the 2013/14 financial year.

The decision reflects mixed results on key performance objectives during the year, but recognises well-managed recovery from a winter of extreme weather.

The five eligible executive directors will each receive around 12.5% of salary (around £50,000 each). The maximum award possible under this scheme was 60% of salary. No bonus was earned for passenger train punctuality, where targets were not met. A 20% reduction was also made to reflect less progress on safety performance than was expected, despite good progress in reducing overall level crossing safety risk.

Notes to editors

The 2013/14 executive bonus scheme was measured across five areas; train punctuality, cost reduction, asset condition, passenger and customer satisfaction and the successful delivery of projects.

The five executive directors eligible for the annual bonus award are: David Higgins (ex-chief executive), Patrick Butcher (group finance director), Robin Gisby (managing director, network operations), Simon Kirby (ex-managing director, infrastructure projects) and Paul Plummer (group strategy director).

As announced on 2 May, the incentive scheme proposal for future years represents a radical revision - removing the long-term bonus element, worth up to 100% of salary, and reducing the annual bonus element from up to 60% of salary to a maximum of 20%.

This radically reformed bonus scheme is intended to run for the full current five-year funding period - CP5 (April 2014 to March 2019) - and will be voted on by Network Rail's equivalent of shareholders, called Members, at the company's Annual General Meeting in July.

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