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Members said the management incentive plan was “totally inappropriate” and a “public relations disaster” during a rowdy meeting in Glasgow.
Philip Davis, who represents the West Midlands region, said that the bonus scheme should be scrapped, at least until railway punctuality had recovered to pre-Hatfield levels. Other members said the scheme was “throwing taxpayers’ money away”.
Five senior managers, including John Armitt, chief executive, and Iain Coucher, deputy chief executive, could be paid as much as 60 per cent of their salaries in bonuses if they reach three performance targets based on railway punctuality, financial efficiency and asset stewardship.
Mr Armitt could be paid as much as £270,000 on top of his £450,000 salary if 84 per cent of trains run on time in the current financial year.
Sir Robert Smith, chairman of Network Rail’s remuneration committee, defended the bonus scheme, saying that, without it, it would be almost impossible to retain and recruit management with the skills to improve the railways.
In a mark of members’ dissatisfaction with the scheme a poll was called for. A final count showed that 86 members voted in favour of the incentive plan while nine voted against and four registered abstentions.
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