Monday 3 Mar 2003

NETWORK RAIL LINKS EXECUTIVE PAY TO PERFORMANCE IMPROVEMENTS

Route:
National
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.”

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About Network Rail

Network Rail owns, manages and develops Britain's railway - the 20,000 miles of track, 40,000 bridges and viaducts and the thousands of signals, level crossings and stations (the largest of which we also run). In partnership with train operators we help people take more than 1.65bn journeys by rail every year and move hundreds of millions of tonnes of freight, saving almost 8m lorry journeys. We employ 38,000 people across Britain and work round-the-clock, each and every day, to provide a safe, reliable railway.

About the Railway Upgrade Plan

The Railway Upgrade Plan is Network Rail's investment plan for Britain's railways. It makes up two-thirds of Network Rail's £40bn spending priorities for the five years to 2019 and represents the biggest sustained programme of rail modernisation since the Victoria era. It is designed to provide more capacity, relieve crowding and respond to the tremendous growth Britain's railways continue to experience; passenger numbers have doubled in the past 20 years and are set to double again over the next 25 years - so we need to continue to invest in building a bigger, better railway. For passengers, that means:

  • longer, faster more frequent trains;
  • better, more reliable infrastructure; and
  • better facilities for passengers, especially at stations.

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