Network Rail boss bonus share

Five Network Rail bosses will be able to share a £2 million bonus package a payout plan was backed the at the firm's annual meeting.

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The bonuses on offer to Network Rail bosses

Network Rail's five executive directors are appointed by the organisation's 44 members.

  • Chief executive David Higgins earns a £577,000 salary
  • Finance director Patrick Butcher is on £394,000
  • Operations manager Robin Gisby and projects boss Simon Kisby earn £371,000
  • Strategy director Paul Plummer earns £348,000 per annum

As well as their salaries, the directors are also entitled to two generous bonus packages.

The first is an annual scheme which pays bosses an additional 60 percent of their salary, when targets on punctuality as well as train company and passenger satisfaction are met.

Its second bonus package is long term scheme pays five bosses up to 100 percent of their salary if they meet targets on efficiency savings, train punctuality and completing work on time.The total package is worth a total of £2 million - and only is paid out in 2015 if targets are met.

Union: Network Rail bonuses are 'a reward for failure'

Network Rail's 44 members - the equivalent of shareholders - backed the long term bonus, despite being urged by protesters to vote against the scheme.

The Transport Salaried Staffs Association's (TSSA) described the decision as "rewarding failure" amid concerns about service punctuality, rising train fares and a number of rail-related deaths.

The Transport Salaried Staffs Association says the bonus scheme is a "reward for failure". Credit: Press Association

But Network Rail chairman Richard Parry-Jones, who is not entitled to the bonus package, insisted the firm had made exceptional progress over the past 12 months.

He said challenges facing the organisation have been passenger numbers rising to 1.5 billion on a network and carrying out £4.4 billion worth of improvement on "Victorian" rail network.

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Network Rail members in favour of director bonuses

Network Rail members have approved a fresh lucrative bonus package for its top directors - amid fierce criticism from unions.

Network Rail members have voted in favour of bonus packages for the firm's top directors. Credit: Press Association

The move will see five executives to share a pot of £2 million - officially called the Long Term Incentive Plan - which will only be paid out if key targets are met by 2015.

But should bosses meet those goals they will scoop the windfall on top of their six figure salaries and an annual scheme worth up to £1.236 million.

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