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Three rail bosses in line for £1.2m pay packages as commuters race rocketing fare rises


Three rail bosses in line for £1.2m pay packages as commuters race rocketing fare rises

Read more: http://www.dailymail.co.uk/news/article-2261996/Three-rail-bosses-line-1-2m-pay-packages-commuters-race-rocketing-fare-rises.html#ixzz2HwUCrc5O

Three rail bosses in line for £1.2m pay packages as commuters race rocketing fare rises
 Rail execs could be about to get a bonus of nearly a million pounds
 Unions are fuming that the bonuses could go ahead as ticket prices soar
By Ben Spencer
PUBLISHED:02:09, 14 January 2013| UPDATED:02:10, 14 January 2013

Bonus: Directors at Network Rail could be in line for bonuses of up to £900,000 each, despite spiralling ticket prices
Directors at Network Rail could be in line for bonuses of up to £900,000 each next year while passengers face rocketing fare rises, it emerged last night.
Train fares are set to rise above the rate of inflation for the next six years, Network Rail announced last week.

But while many commuters will struggle to pay the rising ticket prices, executives at the company could receive bonuses worth more than double their salaries, with three of them likely to take home more than £1million each in 2014.
Network Rail’s complex bonus structure will see top directors benefiting from three different bonus schemes, according to the Daily Telegraph.

Robin Gisby, the operations director, Patrick Butcher, the financial director and Simon Kirby, the infrastructure director, will each receive a £300,000 bonus just for turning up to work - a perk aimed at stopping them from leaving Network Rail for other employers.

They will also be in line for long-term bonuses of up to £350,000 each for their work between 2009 and 2011.

And they are also entitled to annual bonuses worth up to 60 per cent of their salary if they exceed a series of financial and operational targets - which they are on track to meet.

The bonuses mean the overall pay of the three men could exceed £1.2million next year.

Meanwhile Paul Plummer, the strategy director, could be paid £960,000, and David Higgins, the chief executive of Network Rail, will receive a pay package of more than £1million.
Mr Higgins does not qualify for the earlier long-term bonuses because he became chief executive in February 2011.
 News of the payouts comes after Network Rail bosses gave up their annual bonus payments last year, amid pressure to reduce high payouts at a time of public sector austerity.

A spokesman for the Department for Transport said: ‘In an industry where costs add up to over £11 billion per year, it is important that Network Rail attracts, retains and motivates the right executive talent so that the railway runs safely and effectively.
‘It is of course also important that any awards are proportionate and related to performance.’

Union bosses are furious that the execs will get the bonus as passengers are lumbered with price hikes
He added: ‘Network Rail is examining its long term position on executive pay with its new public interest director Michael O’Higgins who will represent the interests of the public in the company’s discussions.’
Furious union bosses last night reacted with fury at what they described as a self-run ‘gravy train’.
Manuel Cortes, leader of the TSSA rail union, told the newspaper: ‘Hard pressed passengers will be furious at a time that they have just suffered their latest inflation plus hike in fares, Network Rail bosses are looking at vast bonuses at what is, in effect, a publicly funded monopoly.

‘They seem to be running their own gravy train during what is meant to be an age of austerity. They are certainly not sharing the pain of passengers during the recession and Ministers must act to stop taxpayers money being abused in this cavalier fashion.’
Maria Eagle, the shadow transport secretary, said: ‘Commuters facing 9 per cent fare rises will be outraged at the scale of the bonus packages being enjoyed by a few at the top of the rail industry.

‘It will be unacceptable if payouts on this scale are made when performance remains deeply inadequate, with many passengers facing overcrowded services and too many delayed and cancelled trains.

‘The Government should sit down with Network Rail and look again at whether a bonus scheme on this scale is really appropriate in a company funded by the taxpayer by more than three billion pounds every year.’

A spokesman for Network Rail ‘no decision’ has been made about the level of bonuses in 2014.

Read more: http://www.dailymail.co.uk/news/article-2261996/Three-rail-bosses-line-1-2m-pay-packages-commuters-race-rocketing-fare-rises.html#ixzz2HwTplWU4

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