Thursday 14 May 2009
NETWORK RAIL CHIEF EXECUTIVE FORGOES ANNUAL BONUS
- Region & Route:
- National
Network Rail's chief executive, Iain Coucher, today announced that he would be forgoing any annual bonus this year.
Mr Coucher has informed the company's remuneration committee that he has taken a personal decision to withdraw from the annual bonus scheme for the year, 2008/9. The incentive scheme focuses achievement on delivering a safe, reliable and efficient rail network over the short- and long-term. The Network Rail bonus scheme comprises two parts; the short term, annual bonus element and the long term element designed to replicate share options within a plc. It is the first part which Mr Coucher is withdrawing from.
Iain Coucher said, "Today I want to be able to talk freely about Network Rail’s story of success and how it has delivered for passengers not just last year but over the last five years without this story being clouded by controversy. In the last 12 months we met or exceeded almost all of the tough targets set for us by our independent regulator.
“I know that there is much more we need to do to deliver a consistently high quality service to all rail users and I am committed to doing just that in the coming years.
As a result of everything the industry has done, we now have a railway carrying a record number of passengers on a record number of trains; passenger satisfaction at 83% has never been higher; 91% of trains arrive on time – the highest national figure ever recorded; travel by train has never been safer and is now the safest form of transport; and we have reduced by £1bn a year for the British people the cost of running the railway.
"Nonetheless I am mindful of current sentiment, so I have taken a personal decision to forego any annual bonus this year. The success of our company and its hard-working people must have the opportunity to be seen and heard.
“Our people have secured this success and every one – from signal box to boardroom – will deserve any bonus which may be awarded to recognise this. Incentivising our people makes sure that the company is focused on what it needs to do. Our people have delivered what has been asked of them and more. I believe we must honour the deal to reward their collective success."
The remuneration committee has yet to meet to discuss bonuses and thus a figure for Mr Coucher has not yet been determined. Details on executive remuneration will be provided when Network Rail publishes its annual report at the end of June.
Notes to editors
Network Rail only awards bonuses for success not failure. We measure: • Train reliability (the reduction in train delays and overall train punctuality) • Asset stewardship (how well we have looked after the railway asset) • Financial efficiency (the extent to which we have made savings) In combination these focus achievement on delivering a safe, reliable and efficient rail network over the short- and long-term. The bonus system is designed to encourage creativity and innovation, whilst discouraging excessive risk taking. Talking to the Financial Times on 21st April, Chris Bolt, Chairman of the ORR spoke of Network Rail's incentive scheme saying that it was "clearly important" and "that's what the financial incentive plan is there to do" - to focus the company on meeting its targets. He also said that provided bonuses were "linked to the regulatory targets, this was a perfectly sensible way to get the management to focus on what customers want."Contact information
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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.
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