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Economics, government & businessLatest NewsBusiness performanceBonusesPay & benefits

Rail executives branded ‘fat controllers’ over bonuses

by Ross Bentley 13 May 2005
by Ross Bentley 13 May 2005

Network Rail executives have been branded “fat controllers” by rail unions after being awarded bonuses worth over half their salaries.

The company’s chief executive, John Armitt, will get a bonus of £270,000, which is 55.6 % of his salary.

The deputy chief executive, Iain Coucher, will get £240,834 and the projects and engineering director, Peter Henderson, and finance director, Ron Henderson, will both get £179,652.

There will be varying bonuses for other senior managers. All other workers will receive £1,112.

The Transport and Salaried Staff union said it was “staggering” that some directors were getting as much as they were. Its general secretary, Gerry Doherty, said: “It is little wonder that these guys are considered fat controllers.”

The performance-related bonuses were awarded after confirmation that Network Rail had beaten targets set by the Office of Rail Regulation for track renewal, train punctuality, and safety improvements.

Network Rail’s chairman, Ian McAllister, said: “In the past year train delays have been reduced by 17 %, significant efficiency savings have been made and the condition of the railway assets has improved markedly. It is only right that employees should share in that success.”

The decision about the size of bonuses and who should receive one is made by the company’s remuneration committee.

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Ross Bentley

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