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| Rail bosses get £1.2m in bonuses | Rail bosses get £1.2m in bonuses |
| (30 minutes later) | |
| Some top Network Rail bosses are to receive bonuses totalling more than £1.2m, the company has announced. | Some top Network Rail bosses are to receive bonuses totalling more than £1.2m, the company has announced. |
| Chief executive Ian Coucher will get more than £150,000 in incentive payments for the performance of his company over the last three years. | Chief executive Ian Coucher will get more than £150,000 in incentive payments for the performance of his company over the last three years. |
| Directors Peter Henderson and Ron Henderson will each get more than £300,000 in bonuses. | Directors Peter Henderson and Ron Henderson will each get more than £300,000 in bonuses. |
| The Transport Salaried Staffs Association (TSSA) union said the bonuses were "completely unjustified". | The Transport Salaried Staffs Association (TSSA) union said the bonuses were "completely unjustified". |
| The union also accused Network Rail - which owns and manages railway infrastructure - of attempting to "bury bad news" on the day Michael Jackson's death dominated news coverage. | The union also accused Network Rail - which owns and manages railway infrastructure - of attempting to "bury bad news" on the day Michael Jackson's death dominated news coverage. |
| The company said that Peter Henderson will receive a £217,000 annual bonus and £112,000 as part of its incentive plan. | The company said that Peter Henderson will receive a £217,000 annual bonus and £112,000 as part of its incentive plan. |
| Their cynicism in trying to bury bad news on the day of Michael Jackson's sad death is truly breathtaking Gerry Doherty, TSSA union leader | Their cynicism in trying to bury bad news on the day of Michael Jackson's sad death is truly breathtaking Gerry Doherty, TSSA union leader |
| And former financial director Ron Henderson will receive an annual bonus of £207,000 plus £112,000 under the three-year plan. | And former financial director Ron Henderson will receive an annual bonus of £207,000 plus £112,000 under the three-year plan. |
| Mr Coucher recently turned down a separate incentive payment, which would have rewarded his performance on an annual basis. | Mr Coucher recently turned down a separate incentive payment, which would have rewarded his performance on an annual basis. |
| His current bonus is instead based on the company's performance over the last three years. | His current bonus is instead based on the company's performance over the last three years. |
| Network Rail's annual report said the remuneration committee had reflected on the disruption to passengers on the West Coast line. | |
| But it said it had noted that the scale of the delivery of the £9bn modernisation project "should not be overshadowed completely". | |
| The committee also said train and freight company satisfaction with Network Rail had not shown the same progress as passenger satisfaction. | |
| Customer and passenger satisfaction would be taken into account when considering the 2009/10 management incentive plan, it added. | |
| The payments to Mr Coucher and his fellow directors are likely to prove unpopular in the light of criticism levelled at Network Rail's failings. | The payments to Mr Coucher and his fellow directors are likely to prove unpopular in the light of criticism levelled at Network Rail's failings. |
| Last month the Office of Rail Regulation (ORR) warned the company over its stewardship of the West Coast main line, which has been plagued by delays. | |
| The ORR said the line's performance in recent months had been "volatile, and the problems are increasing". | The ORR said the line's performance in recent months had been "volatile, and the problems are increasing". |
| 'Disgraceful service' | 'Disgraceful service' |
| The problems came despite a £9bn upgrade project, which was completed last December. | The problems came despite a £9bn upgrade project, which was completed last December. |
| More than one fifth of trains on the London-Glasgow line ran late last year. We are surprised and disappointed by the committee's decision. | |
| NETWORK RAIL BONUSES Iain Coucher Chief Executive - Annual incentive: nil Three year incentive plan: £150,255Robin Gisby Operations Director - Annual: £81,345 Three year: £57,887Peter Henderson Infrastructure Director - Annual: £216,920 Three year: £112,107Ron Henderson now retired - Annual: £206,567 Three year: £112,107Simon Kirkby Director of Infrastructure Investment -Annual: £61,345 Three year: £55,752Paul Plummer Director of Planning and Regulation - Annual: £76,415 Three year: £65,151 | |
| Bill Emery, ORR's chief executive said: "We are surprised and disappointed that Network Rail's non-executive directors decided not to exercise their discretion to reduce significantly the bonuses for its senior executives, reflecting the mixed performance of the company during the last year and the economic climate that is facing many of its customers and suppliers. | |
| "The committee has provided details of its reasons, but we don't find them compelling, and nor do we believe the decision will gain widespread stakeholder support." | |
| The railway infrastructure operator has also recently seen its annual profit fall and its debt level increase. | The railway infrastructure operator has also recently seen its annual profit fall and its debt level increase. |
| Pre-tax profit fell to £1.52bn in the period to 31 March, from £1.59bn in the same period a year before. | Pre-tax profit fell to £1.52bn in the period to 31 March, from £1.59bn in the same period a year before. |
| The company's net debt also rose to £22.3bn from £19.7bn. It also failed to meet efficiency savings targets set by the Office of Rail Regulation. | The company's net debt also rose to £22.3bn from £19.7bn. It also failed to meet efficiency savings targets set by the Office of Rail Regulation. |
| TSSA leader Gerry Doherty said: "Iain Coucher and his cronies win the Brass Neck of the Year award for taking these completely unjustified bonuses. | TSSA leader Gerry Doherty said: "Iain Coucher and his cronies win the Brass Neck of the Year award for taking these completely unjustified bonuses. |
| "They were warned by [Transport Secretary] Lord Adonis and the ORR not to take a penny this year because of the disgraceful five-day-week service on the West Coast line when they should have been operating a seven-days-a-week service. | "They were warned by [Transport Secretary] Lord Adonis and the ORR not to take a penny this year because of the disgraceful five-day-week service on the West Coast line when they should have been operating a seven-days-a-week service. |
| "They are treating passengers and ministers with contempt. And their cynicism in trying to bury bad news on the day of Michael Jackson's sad death is truly breathtaking." | "They are treating passengers and ministers with contempt. And their cynicism in trying to bury bad news on the day of Michael Jackson's sad death is truly breathtaking." |
| Bob Crow, general secretary of the RMT transport union, said: "With thousands of jobs under threat across the railways the news that Network Rail bosses are lining their pockets with another round of inflated bonuses will come as a kick in the teeth to RMT members whose very livelihoods are on the line." |