Aust boss of UK rail firm gives up bonus

7 Feb 2012, 3:06 am   -   Source: AAP
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The Australian boss of Britain's Network Rail says he will not take a bonus this year and allocate the money to safety improvements instead.

The Australian chief executive of Britain's Network Rail says he and his directors have decided not to take any bonuses and to allocate the money to safety improvements instead.

The executives have been under political pressure not to receive any extra money this year amid a huge row over bonuses for banking and other bosses in the UK.

The company's Australian chief executive Sir David Higgins said on Monday: "I and my directors decided last week that we would forego any entitlement and instead allocate the money to the safety improvement fund for level crossings. I can confirm that remains our intention."

The issue was due to be discussed this Friday at a Network Rail (NR) meeting, which the board is now recommending should be adjourned.

NR chairman Rick Haythornthwaite said: "Friday's meeting was not to approve a specific annual bonus payment for executive directors, but rather to amend a previously-approved long-term incentive scheme to ensure additional external scrutiny of performance.

"The issue of annual performance payments would only arise if Network Rail surpassed stretching performance thresholds and would only be decided in May after the end of the financial year."

British Transport Secretary Justine Greening had announced she would attend the meeting and vote against the bonus payments.

"NR's decision to postpone the meeting planned for this Friday and look again at their proposed executive bonus structure is sensible and welcome," Greening said on Monday.

"I have made it clear to NR at every stage that this proposed package did not go far enough in reflecting the need for restraint. It was also the wrong time to look at this issue, given I will be shortly unveiling a rail review that will strengthen the corporate governance of Network Rail and see a special director appointed to the board to represent the views of taxpayers.

"The fact that its executive directors have also chosen to forfeit their annual bonuses to improve level crossings is a sign that they have recognised the strength of public opinion."

Manuel Cortes, leader of the TSSA rail union, welcomed the decision by NR bosses to donate their "six-figure" bonuses this year to improving safety at level crossings.

"We said last week that it beggared belief that NR could be talking about a multimillion, long-term bonus scheme within days of admitting criminal behaviour over the deaths of two schoolgirls at Elsenham six years ago.

"That tragedy only happened because it refused to spend STG2 million on a new bridge at the level crossing despite an internal safety report demanding such action.

"This decision is sadly too little, too late for the parents of the girls who tragically died. But we welcome it as the first step in the direction of the directors starting to put safety and the passengers ahead of their own handsome rewards."

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