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Network Rail Bonuses

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ainsworth74

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Network Rail bosses awarded £2.5m in bonuses

Network Rail has announced £2.5m of bonuses for senior management, despite warnings over excessive pay.

Outgoing chief executive Iain Coucher gets a £641,000 bonus, giving earnings of £1.45m, up 53% from last year when he gave up part of his package.

The rail regulator had warned the government-subsidised infrastructure company about management pay.

Earlier this year, the Office of Rail Regulation demanded "clear evidence" to justify any bonuses to company bosses.

Source: BBC News

Thoughts?
 
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Greenback

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The utter hypocrisy of Network Rail shows through - we won't pay more to front line staff, we'll get rid of them, offer no pay rise, slahs their terms and conditions but give the fat cats with their snouts in the trough as much as we can get away with.

I feel sick.
 

Dai.

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I saw this as I passed through BBC news today, I think it's absolutely shocking that they would do this.
 

merlodlliw

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Bonus for failure, the seniors at NR should be got rid off, they don't give a dam for anyone except themselves, and this is a not for profit Company,or supposed to be.
Now lets see if the ORR (quango) with its appointed overall rail stewardship is made of steel or waffle.
No one with a normal brain could support this greed.

M
 
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Greenback

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The whole organisation should be scrapped, and probably will be after this, being as there's a new government who would want to sweep away anything created by New Labour.

As Metroland said, suicide.
 
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The whole organisation should be scrapped, and probably will be after this, being as there's a new government who would want to sweep away anything created by New Labour.

As Metroland said, suicide.

In fairness, its not like Railtrack was any better.

So whats next, split it up and sell it off with the TOC franchises? I cant imagine the TOCs would go for it unless they get a 25year franchise to go with it.
 

Greenback

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I can't even begin to predict what this coalition government will do! Anything is possible!

Labour were just as keen to get rid of Railtrack because it wasn't their creation! That's part of the problem with our political system, ate very level. A new administration often just wants to take down everything their predecessors did, regardless of whether it worked, or was a really good idea.

Of course, NR was neither of those in the first place!
 

tbtc

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The cynic in me wonders whether this was "one last hurrah" as they know they'll not be able to get away with similar bonuses in future (under "The Coalition") - they can see their good times are ending so have decided on one last massive bonus.

The days of anyone in "the public sector" earning more than the Prime Minister (approx £200,000?) seem to be coming to an end

In fairness, we don't know exactly what the ratio between improvements and salary is, or whether they have met individual targets, or other personal details, but I'd be more than surprised if these were all justified.
 

Greenback

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You could be right there! It crossed my mind, but I put it down to my usual cynicism!

It can't be justified in the public sector, no matter what the targets were! the bonuses and incentives come to over 70% of Coucher's already too large salary!
 

merlodlliw

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I can't even begin to predict what this coalition government will do! Anything is possible!

Labour were just as keen to get rid of Railtrack because it wasn't their creation! That's part of the problem with our political system, ate very level. A new administration often just wants to take down everything their predecessors did, regardless of whether it worked, or was a really good idea.

Of course, NR was neither of those in the first place!

If I recall Railtrack was a listed PLC that went bust, but a new not for profit
company was formed by the Govt, Network Rail which is still wallowing in tax payers handouts, yes this is probably a last stand, but I am sure the Govt will have nothing of this again, The ORR do have the right to stop this bonus as Network Rail is still part owned? but subsidised by Westminster. Again Coucher
and Co are the worst face of greed for failing to deliver the goods.
Locally ERTMS comes to mind, 2 years late,£millions over budget etc etc.

M
 

Greenback

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Yes, that's right! Some said the demise of Rialtrack was helped by actions of the government, or that the government could at least have acted to save the company. There was a lot of fuss about it at the time, many shareholders were furious!

At the very least, I think it's fair to say that Labour took advantage of the situation to wind up soemthing they didn't like as it had been created by 'the other lot'!!!
 

merlodlliw

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Yes, that's right! Some said the demise of Rialtrack was helped by actions of the government, or that the government could at least have acted to save the company. There was a lot of fuss about it at the time, many shareholders were furious!

At the very least, I think it's fair to say that Labour took advantage of the situation to wind up soemthing they didn't like as it had been created by 'the other lot'!!!

And I recall a mate of mine who worked at Ellesmere Port box, playing hell due to all his free shares in rail track becoming worthless.

M
 

Metroland

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At the very least, I think it's fair to say that Labour took advantage of the situation to wind up soemthing they didn't like as it had been created by 'the other lot'!!!

Yep, they weren't keen on Capitalist fat cats. They've removed the capitalism, but not the fat cat.

At least truly commercial fat cats don't hold the tax payer to ransom, and whatever NR like to claim were still only at BR levels of service in terms of punctuality and way above BR in terms of cost.
 

jon0844

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Do you think that Mr Coucher was told he'd get the bonus if he resigned? It will be interesting to see what happens. If a deal was done, we might have to accept those payments - or some of them at least.

You can imagine what happens behind closed doors.
 

mumrar

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and whatever NR like to claim were still only at BR levels of service in terms of punctuality and way above BR in terms of cost.
In the interest of reasoned debate, do you have anything to back that up? Since 2002 Network Rail has nearly halved the delay minutes it caused in a year www.networkrail.co.uk/aspx/653.aspx
Under Railtrack, between 1999-2003 delay minutes caused by infrastructure (Railtrack and NR are liable to weather related delays too) went from 4.9mil to 9.7mil, then in the next five years Network Rail got it down to 3.8mil www.nao.org.uk/publications/0708/reducing_passenger_rail_delays.aspx
Over the past 5 years the PPM figure, which has been measured the same way throughout those 5 years has increased by around 5% www.networkrail.co.uk/aspx/742.aspx
Despite the shiny beacon that was BR, I remember plenty of absolutely ridiculous delays (around 6hrs for an HST on the Lickey) and Inter-City services were regularly full to bursting with the inadequate air-con not even close to coping (I felt like I was suffocating as a 12 year old in some mk2s to Glasgow). The HSTs were pretty good for BR and helped shift people quickly, but the public purse would not have been able to react to such a sharp rise in patronage (I think in one of the links above it is put at 25% more passenger journeys in a 5 year period) no matter how many mk1s and freight locos were sat idle.
 

Metroland

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In the interest of reasoned debate, do you have anything to back that up? Since 2002 Network Rail has nearly halved the delay minutes it caused in a year www.networkrail.co.uk/aspx/653.aspx
Under Railtrack, between 1999-2003 delay minutes caused by infrastructure (Railtrack and NR are liable to weather related delays too) went from 4.9mil to 9.7mil, then in the next five years Network Rail got it down to 3.8mil www.nao.org.uk/publications/0708/reducing_passenger_rail_delays.aspx
Over the past 5 years the PPM figure, which has been measured the same way throughout those 5 years has increased by around 5% www.networkrail.co.uk/aspx/742.aspx
Despite the shiny beacon that was BR, I remember plenty of absolutely ridiculous delays (around 6hrs for an HST on the Lickey) and Inter-City services were regularly full to bursting with the inadequate air-con not even close to coping (I felt like I was suffocating as a 12 year old in some mk2s to Glasgow). The HSTs were pretty good for BR and helped shift people quickly, but the public purse would not have been able to react to such a sharp rise in patronage (I think in one of the links above it is put at 25% more passenger journeys in a 5 year period) no matter how many mk1s and freight locos were sat idle.

Of course:

Firstly cost:


http://www.dft.gov.uk/pgr/statistics/datatablespublications/trends/current/section3pubtran.pdf

If you go to page 10, Government grants to BR was around £1 billion per year, it climbed slightly in Railtrack days due to the WCML. After 2000, when NR was created it climbed heavily, and is now nearly £5 billion per year.

On page 11, it shows that investment in rollingstock under BR in the early 90s was twice the level it is now.

http://www.manchesteruniversitypress.co.uk/uploads/docs/250111.pdf P120

Look at the situation since the war, today's government grant is now at twice the level of the 1950s which turned a steam railway into the railway we know now. And in the 50s it was a loan.


On on p121 it shows miles of track replaced, were still only at 1970s levels when the HSTs came into service.

As the network assets are being more intensively unit costs should be coming down, not going up. NR often claims it has removed X from the cost of running the railway, but the reality is, it's still not as efficient as BR or Railtrack.

Under NR, very little new big schemes have taken place, certainly no large scale electrification or the resignalling BR undertook on the West of England main line and midland main line in the 80s, and IECCs in the 90s.

Passengers are also paying a lot more, passenger revenue was 3,663 million in 2002, and over 6,000 million (nearly double what it was) in 2009. Remember this is a period of quadrupling government support!

http://www.rail-reg.gov.uk/upload/pdf/YEARBOOK0809-v22.pdf P17

Clearly any extra money is coming from government in some way, the private sector in effect is putting no money in overall, which makes a mockery of privatisation.

Next punctuality:

http://www.dft.gov.uk/pgr/statistics/datatablespublications/trends/current/section3pubtran.pdf p13

Punctuality is roughly what it was in 1997 at the dawn of privatisation.

Leaving aside timetabled have been padded out substantially, with many services taking longer than in the 1930s than today, I can provide further information if you want: There was a recent article in railway magazine, the SR in particular has much slower times than in steam days.

But here's one source

http://www.timesonline.co.uk/tol/news/uk/article528218.ece

'Nationalised BR tempted people on to trains by advertising reductions in journey time, but the privatised companies have switched the focus to reliability rather than speed and several have added extra minutes to the timetable to avoid penalties for delays.

Journeys on the Great Western Main Line now take up to 20 minutes longer than in 1980, using the same trains. The fastest journey from London to Edinburgh took just under four hours in the 1990s but now takes ten minutes longer. On some regional routes, journeys were faster when Queen Victoria was on the throne. '

BR punctuality statistics are now archived and are not easily to come by punctuality on the ECML was higher than it is now, and the WCML about the same, before £9bn was spent on it.

The only part of NRs saving grace is more trains are being running now. But nationalised Swiss federal railways regularly achieves 95% on a very intense network with stiff gradients. The ORR have written to NR and said their performance is 'mixed', and many concerns are evident especially on efficiency.
 
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