Wednesday 29 May 2013
Network Rail announces reduced bonuses for its directors
- Region & Route:
- National
A year that saw some successes as well as some targets missed has resulted in a significantly reduced annual bonus for Network Rail’s five executive directors.
The financial year 2012/13 saw:
- Passenger satisfaction reach a record high – 85%
- Passenger numbers reach 1.5bn for the first time since the 1920s
- 95% of passengers felt that rail travel during the Olympics had exceeded or met their expectations
- £4.4bn worth of work on almost 2,000 projects aimed at improving and expanding the railway
- The renewal and rebuilding of 201 bridges
- The replacement of 940 miles of track
- Almost 91% of trains for the 12 months run to time, but below the targets set by the Office of Rail Regulation
- Significant improvement in the satisfaction levels of train and freight operating companies
Richard Parry-Jones, chairman, said: “2012 was a year of positive progress for the company with some great highs – delivering seamless transport for the Olympics – to lows of frustration with a slowdown in our rate of delivering better train punctuality. While this was particularly impacted by a year of extreme weather, the wettest on record, we are working to improve the resilience of our network to cope with such demands.
“Our executive bonus payments for this year correctly reflect successes as well as shortcomings and as a result have been significantly reduced from a potential award of 60% of salary to 17% for the financial year just completed.
“Bonuses are only awarded for achievements significantly beyond what is expected of an executive in the delivery of their challenging day jobs. The remuneration committee felt that while performance was good in most areas, truly exceptional performance had not been achieved in financial efficiency and asset stewardship, and our train performance targets were not met. But we also needed to recognise the significant successes that had been delivered in the business during the year."
Notes to editors
Details of the annual bonus award for the executive directors:
|
Current salary |
Actual bonus earned out of a maximum of 60% of salary |
|
|
David Higgins |
£577,000 |
17% or £99,082 |
|
Patrick Butcher |
£394,000 |
17% or £67,658 |
|
Robin Gisby |
£371,000 |
17% or £63,708 |
|
Simon Kirby |
£371,000 |
17% or £63,708 |
|
Paul Plummer |
£348,000 |
17% or £59,759 |
2012/13 bonus targets and achievements:
|
Weighting of each factor |
Minimum target to qualify for any bonus |
Stretch target to earn maximum possible bonus |
Actual year end result |
Bonus earned |
||
|
Passenger train punctuality |
27% |
92.0% |
92.5% |
90.9% |
0.0% |
|
|
Freight punctuality |
3% |
75.8% |
77.0% |
74.1% |
0.0% |
|
|
Asset Stewardship |
20% |
0.091 |
0.123 |
0.093 |
1.3% |
|
|
Cost efficiency |
20% |
16.8% |
22.3% |
17.0% |
2.5% |
|
|
Passenger Satisfaction |
10% |
83.7% |
84.3% |
84.3% |
10.0% |
|
|
Customer Satisfaction |
10% |
The annual independent survey of how well Network Rail engages with its direct customers saw overall satisfaction increase by 54% |
10.0% |
|||
|
Progress on investment projects |
10% |
Significant achievements of key milestones were reached in the reporting year |
8.0% |
|||
|
Overall result (including a further 10% reduction by the remuneration committee*) |
28.6% of the possible 60% |
|||||
|
Bonus earned by exec directors (salary equivalent) |
17.17% |
|||||
*Whilst Network Rail has one of the best safety records in the world, the remuneration committee felt more could have been done to improve workforce safety, but noted the development of a safety culture within the business. The committee used its discretionary powers to reduce the overall award by 10% to reflect these failings. The committee does believe the development of a safety culture within the business will eventually lead to safety improvements for both passengers and the workforce.
- Executive directors will see a salary increase of 2.5% for 2013/14 in line with the management pay award for the rest of the company
Contact information
Passengers / community members
Network Rail national helpline
03457 11 41 41
Latest travel advice
Please visit National Rail Enquiries
Journalists
Network Rail press office - National
020 3356 8700
mediarelations@networkrail.co.uk
About Network Rail
We own, operate and develop Britain's railway infrastructure; that's 20,000 miles of track, 30,000 bridges, tunnels and viaducts and the thousands of signals, level crossings and stations. We run 20 of the UK's largest stations while all the others, over 2,500, are run by the country's train operating companies.
Usually, there are almost five million journeys made in the UK and over 600 freight trains run on the network. People depend on Britain's railway for their daily commute, to visit friends and loved ones and to get them home safe every day. Our role is to deliver a safe and reliable railway, so we carefully manage and deliver thousands of projects every year that form part of the multi-billion pound Railway Upgrade Plan, to grow and expand the nation's railway network to respond to the tremendous growth and demand the railway has experienced - a doubling of passenger journeys over the past 20 years.
Follow us on Twitter: @networkrail
Visit our online newsroom: www.networkrailmediacentre.co.uk