27.05.14
Network Rail reduces directors’ bonuses
Network Rail has awarded bonuses significantly below target to the company’s executive directors for the 2013/14 financial year.
Its remuneration committee stated that the five eligible executive directors will each receive around 12.5% of salary (around £50,000 each).
This follows Network Rail’s decision, as announced on 2 May, that it was removing the long-term bonus element of its scheme, worth up to 100% of salary, and reducing the annual bonus element from up to 60% of salary to a maximum of 20%.
The decision reflects mixed results on key performance objectives during the year, but recognises well-managed recovery from a winter of extreme weather.For instance, no bonus was earned for passenger train punctuality, where targets were not met. And a 20% reduction was also made to reflect less progress on safety performance than was expected, despite good progress in reducing overall level crossing safety risk.
The five executive directors eligible for the annual bonus award are: David Higgins (ex-chief executive), Patrick Butcher (group finance director), Robin Gisby (managing director, network operations), Simon Kirby (ex-managing director, infrastructure projects) and Paul Plummer (group strategy director).
The reformed bonus scheme is intended to run for the full current five-year funding period - CP5 (April 2014 to March 2019) - and will be voted on by Network Rail's equivalent of shareholders, called Members, at the company's Annual General Meeting in July.
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