Monday 3 Mar 2003
NETWORK RAIL LINKS EXECUTIVE PAY TO PERFORMANCE IMPROVEMENTS
- Region & Route:
Network Rail, the ‘not for dividend’ successor to Railtrack, today unveiled demanding performance targets which link executive pay to improvements in rail services. The Management Incentive Plan (MIP) ensures that senior executives will only receive bonus payments if real benefits for the travelling public are delivered.
Network Rail is a company limited by guarantee with Members instead of shareholders and so the question of putting shareholders interests before those of passengers does not arise. The new Management Incentive Plan is specifically designed to align executive remuneration with the interests of rail users; their interests will be identical.
The Management Incentive Plan for next year will be reviewed in conjunction with the forthcoming business plan and will include a long term incentive mechanism.
Ian McAllister, Chairman of Network Rail, says: “This incentive plan will reward senior executives only if they deliver significant improvements in rail network performance. If performance does not improve, there will be no bonus payments.
“This scheme directly links executive pay to success in meeting three key challenges facing the rail industry – improving performance, tackling costs and delivering our vision of engineering excellence.
“It is essential that Network Rail is able to attract and retain senior executives of the highest calibre. That means we have to be able to remunerate them accordingly but only if the travelling public enjoy a measurably better rail network.”
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.
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