Network Rail’s top chiefs will not receive bonuses for last financial year after the debacle that has seen performance targets missed, punctuality slip and major works suspended.
Network Rail’s top bosses will not receive bonuses for the last financial year after taking the blame for missed performance targets, slipping punctuality and the suspension of major works.The rail infrastructure operator announced that its executive directors would not receive a performance-related payments after a nightmare start to control period five (CP5).
The move comes after transport secretary Patrick McLoughlin called a halt to electrification work in the Midlands, and on the Trans-Pennine route between Leeds and Manchester, to force Network Rail to force Network Rail to focus its efforts on getting the Great Western line electrification right.
Earlier this month, regulator the Office of Rail and Road (ORR) announced an investigation after Network Rail failed to hit 30 of 84 enhancement milestones in 2014-15,the first of five years of its £38.5bn CP5 programme.
In December 2014, late running engineering works caused train cancellations and delays to and from London hub stations Paddington and King’s Cross, resulting in travel misery for manay and a scathing assessment from the regulator.
Bonuses used to be a major attraction for rail bosses, with an entitlement of up to 160% of salary. This was slashed to a maximum of 20% just last year.
But now the misery has worsened for those once known as fat cats.
Network Rail said in a statement: “Given the change in outlook compared to the regulatory settlement, Network Rail’s remuneration committee has decided that no bonuses should be paid to its executive directors for 2014/15.”
Network Rail chief executive Mark Carne said: “During my first year in the job I have looked closely at every aspect of our business and it has become clear that Network Rail signed up to highly ambitious five-year targets set by the regulator.
“Based on historic improvements from a low base, we were overly optimistic about the capacity of our company and our supplier base to step up several gears in order to achieve the plan, especially given the complexities of a network that is at full capacity much of the time.”