Great Western Coffee Shop

Nearly 200 public sector ^fat cats^ are earning more than Gordon Brown, according to a new rich list published today.

The public sector rich list has been drawn up by the Taxpayers^ Alliance, a pressure group. It is likely to grow even more next year. While some of Britain^s biggest companies are announcing redundancies, an extra 50,000 public sector officials will have been recruited in the six months to the end of the year.

Topping the new table is Iain Coucher, chief executive of Network Rail, who saw his total remuneration rise by 51% to ^1.24m from ^823,000 last year. This includes an annual bonus of ^306,000, a longer-term incentive payment of ^205,000, a pension contribution of ^169,000 and benefits of ^25,000, including life insurance cover.

Coucher gets the shared use of a chauffeur-driven Lexus hybrid car to help to travel between his flat in Marylebone, central London, and the Northamptonshire farmhouse where he lives with his wife Tanya and their children. He owns a silver Aston Martin DB9, capable of doing 165 miles an hour, but he misses out on free train travel because he joined the railways after British Rail was broken up.

Network Rail insisted last week that it should be regarded as a private company, even though it is funded largely by the government. The taxpayer also had to pick up the bill when it was fined ^14m by the Office of Rail Regulation for the disruption to services caused by overruns in engineering works last Christmas and new year.

Gerry Doherty, general secretary of the Transport Salaried Staffs^ Association, which has 30,000 members, said: ^Why should taxpayers fork out such amounts for failure?^

But they do something a lot more useful than Gordon Brown ;)

But they do something a lot more useful than Gordon Brown ;)

Network Rail's chief executive is to give up his annual bonus for this year, saying he does not want it to cloud discussion of the firm's performance.

But other members of the Network Rail executive committee are still being considered for payments which could total hundreds of thousands of pounds.

And Iain Coucher will still be paid for the company's long-term performance.

Network Rail insists it has hugely improved the railways and executives should be rewarded for the achievement.

Rail bosses get ^1.2m in bonuses

Top Network Rail bosses will get bonuses totalling over ^1.2m, despite criticism of the firm's performance.

Chief executive Ian Coucher will get more than ^150,000 in incentive payments for the performance of his company over the last three years.

Directors Peter Henderson and Ron Henderson will each get more than ^300,000.

The Office of Rail Regulation said it was "surprised and disappointed" at the decision to award large bonuses.

There were also accusations - strongly denied by Network Rail - that the company had attempted to "bury bad news" on the day Michael Jackson's death dominated news coverage.

Network Rail chiefs are on a collision course with the government after indicating they will defy transport secretary Philip Hammond by paying out generous bonuses to staff and senior management.
The rail infrastructure operator is due to announce its staff bonuses at the end of the month, when its top brass could earn many hundreds of thousands of pounds on top of their already inflated salaries.
Last year, Network Rail chief Iain Coucher waived his ^300,000 annual bonus, but three colleagues banked a combined total of ^800,000.
However, Coucher still received ^150,000 as part of a three-year rolling management incentive scheme. This was on top of his ^650,000 salary.
Coucher said: 'We always believe that bonus schemes drive the right behaviours and the railway has today seen the benefit of that.'
He acknowledged any rewards would need to be for 'exceptional performance' and said it would take account of the views of stakeholders, such as the government and Office of Rail Regulation.
The ORR this week warned Network Rail's remuneration committee to 'exercise considerable discretion' with bonus payments, while Hammond wrote to the infrastructure group's chairman
Rick Haythornthwaite urging him to be 'sensitive' to how taxpayerfunded bonuses will be viewed at a time when the government is embarking on severe public spending cuts.
Hammond said that although Network Rail is legally a private company, it is also one that 'depends on taxpayers' money and has all its debts guaranteed by government. Asked whether he was paving the way to pay bonuses, Coucher said: 'It seems harsh to say to them (staff), "Even though you have achieved everything we have asked you to, we are going to take away your bonus".'
He was speaking as Network Rail reported a 75 per cent fall in annual pretax profit to ^395million, which reflected a regulatory ruling forcing it to reduce track charges to train companies by 7 per cent.
It was also hit by higher staff costs and higher debt interest costs, as its borrowings rose to ^23.8bn from ^22.3bn to help fund its investment programme.
The company also said train punctuality rose 1 percentage point to 91.5 per cent in the year - ahead of its 91pc target.
Punctuality has risen from an appalling 78.6 per cent since it took over from the failed Railtrack in 2002.
Network Rail said its focus on controlling costs meant the average cost of running a train one mile had fallen by 25p in the last year, and was now ^3 less than in 2004.

Presumably that's ^375 m not invested in the railways

No problem with staff on the ground in all weathers getting ^950, but a bonus for the managers in a year when debt has increased, the ORR has had a go at NR and track workers have died seems wrong to me.

On the other hand, thousands of people were badly delayed yesterday morning in FGW land by yet another power failure killing the signal system around Didcot. Not too many of them are likely to think Mr Coucher is worth a bonus, especially when he gets rather more than the Prime Minister in basic pay, never mind bonuses.

Network Rail has announced ^2.4m of bonuses for senior management, earning the ire of the transport secretary.
Philip Hammond said he was "very disappointed" by the decision, and called for a "far-reaching" pay review.
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 (ORR) demanded "clear evidence" to justify any bonuses to company bosses.
"Network Rail is of course a private company," said Mr Hammond. "But one that is dependent on taxpayer funding. In the week when everyone has been asked to share the burden of reducing Britain's deficit, people will rightly be asking how Network Rail's top executives feel this is appropriate."
The transport secretary called for the upcoming review of the management incentive plan to be far reaching and fundamental.
The ORR, which sets Network Rail's level of public funding, criticised parts of the operator's performance - including the death of three railway workers in the past year - in its recent annual assessment.
In addition it said: "We consider that the level of our intervention and the pressure we needed to apply went above what should have been required."
The ORR also said it was "not yet convinced of the efficiency gains the company is claiming".
The bonus decisions come as Network Rail seeks a successor to Mr Coucher to take over the negotiation of the next funding round.
Mr Coucher is set to leave after eight years with the firm, and three years as chief executive.

Could not afford the pay cut  :P

Mr Coucher will be a tough act to follow

Mmm. That may be your opinion but I can think of a few thousand NR people that won't be sad to see him go..... ::)

They're advertising for a new CEO in the Appointments section of today's Sunday Times if anyone's interested!

They're advertising for a new CEO in the Appointments section of today's Sunday Times if anyone's interested!

Network Rail bonuses approved despite controversy

Controversial six-figure bonuses for Network Rail bosses have been approved, despite criticism from the prime minister and unions.

Members of the not-for-profit company's ruling body voted in favour of the pay package by 37 votes to 31, with nine abstentions.

Outgoing chief executive Iain Coucher will get ^641,000.

David Cameron's office reiterated his deep disappointment at the decision, while union bosses were scathing.

"The Prime Minister said at the time that he was deeply disappointed," said a spokeswoman for Number 10.

"Now, clearly, they have voted for those bonuses, and his view remains the same."

Network Rail's outgoing fat-cat boss Iain Coucher was shoved under the spotlight again on Friday after union leaders demanded a full investigation into his "James Bond" lifestyle.

Transport union RMT revealed that he was given a Coutts gold card to withdraw ^100,000 in cash at any time, as well as giving him access to a series of other lucrative perks including a taxpayer-subsidised Aston Martin.

In his eight years at the helm of the publicly owned rail company, Mr Coucher accumulated more than ^7 million in personal gains.

RMT general secretary Bob Crow recalled: "Last Friday, the coroner in the Potters Bar inquest said that throughout that period Coucher has presided over a rail system that remains a continuing threat to life and limb. Getting ^7 million for running a railway network condemned as a death trap is an outrage.

"While Iain Councher has been filling his boots at our expense he has been axing safety-critical maintenance staff and scrapping essential renewals work."

Mr Crow went on to demand a "forensic examination into his scandal and an end to the commercial-style operation of Network Rail."

Network Rail to investigate 'lavish pay and perks' claims against chief executive

Rick Haythornthwaite, the Network Rail chairman, has vowed to investigate claims that the company's outgoing chief executive Iain Coucher enjoyed "lavish pay and perks" at the taxpayer's expense.

The allegations have been made in a series of articles in satirical magazine Private Eye, and include details of how Mr Coucher allegedly had the use of a Coutts World Card which allowed him to draw up to ^100,000 a day in business expenses.

Other claims include that he was paid ^20,000 a year for renting an elegant apartment in a Georgian square in central London and that he was paid ^13,000 a year towards the cost of running his Aston Martin.
 
Gerry Doherty, general secretary of rail union TSSA has attacked the "James Bond lifestyle" allegedly held by Mr Coucher as a result of the several benefits he is said to have enjoyed at the company, which is dependent on taxpayer funding.

Network Rail said "several members" had raised the allegations with Mr Haythornthwaite to find out what he was going to do about it.

In an email to the 100 public members at Network Rail, Mr Haythornthwaite wrote: "Whilst Private Eye does not always have a reputation as a document of record, the innuendo and occasional specific allegations that have been appearing over the past 18 months in it and various other publications are harmful to the reputation of the company and the individuals concerned."

He added: "I will be reviewing again the findings of those investigations and looking at the only new allegations to emerge in this article."

A Network Rail spokesman dismissed the claims as "nonsense". He added: "Naturally, [the chairman] wants to allay [members'] concerns by reporting back to them."

Mr Coucher, who resigned in June after three years in the role, will receive ^641,349 in bonuses on top of his salary of about ^600,000.

Network Rail seeks external candidates for Coucher replacement

Network Rail is looking outside its business to fill the role of chief executive, NCE has learned.

The rail infrastructure owner and operator is now on the hunt for someone to fill the role when outgoing boss Iain Coucher leaves.

It means that senior Network Rail figures such as investment projects director Simon Kirby and operations and customer services director Robin Gisby will be unlikely to apply for the top job.

According to Network Rail, Coucher is assisting the board and chairman Rick Haythornthwaite in the search for his successor. But it is likely the company will want to find someone who can begin to forge a closer relationship with the new coalition government.

Transport secretary Philip Hammond has made little attempt to conceal his dismay at Network Rail^s since its decision last month to award large bonuses to its senior executives.

The firm^s six executive directors will receive annual incentives totalling ^1.3M while Coucher will depart with ^1.25M in pay and bonuses.

The government is now eagerly awaiting the findings of transport expert Sir Roy McNulty into value for money in the rail industry. In June, Hammond requested that McNulty fast-track his initial findings, so that they can feed into October^s spending review.

The transport secretary also intimated last week to MPs that the way Network Rail is structured and funded was under review.

Speaking to the Commons Transport Select Committee Hammond said that both issues were being looking at by McNulty and that key to resolve would be a review of the previous government^s decision to keep Network Rail debt off the balance sheet.

^I have the impression that the previous government will have on occasions been itching to intervene or give an opinion on what Network Rail was doing but had to restrain itself because of its concern about keeping the debt off balance sheet,^ Hammond said. ^I do not have any such theological focus on keeping the debt off balance sheet^ We will not allow our relationship with Network Rail to be dictated by an artificial accounting convention.^

Fat-cat pay row as man charged with delivering 2012 Olympics is named as new boss of Network Rail

The man charged with delivering the 2012 London Olympics was tonight named as the new boss of Network Rail on a controversial pay and bonus package totalling nearly ^1million a year.

The appointment of Olympic Delivery Authority (ODA) boss David Higgins as Network Rail^s new chief executive sparked an immediate ^fat-cat^ pay row and raised concern over yet another lucrative public sector merry-go-round that rewards those jumping from one tax-payer-funded enterprise to another.

Network Rail said the final details of Mr Higgins pay and bonus package were still being negotiated but that in basic pay he would earn more than he did at the ODA - up to ^450,000 - but less his predecessor Iain Coucher^s ^613,000 basic salary.

However, that still means he is on track for a basic pay of at least ^500,000, with bonuses of as much again - putting him on a package of around ^1million a year. Network Rail said the bonus package was also ^still being negotiated^.

Mr Higgins, former chief executive of construction firm Lend Lease, will succeed controversial Iain Coucher, who is stepping down at the end of October.

Mr Coucher, who has been with the company for eight years, announced his departure in June, amid outrage over his earnings. Mr Higgins, currently a non-executive director of Network Rail, will take up his new position on February 1 next year.

Outgoing chief executive Mr Coucher^s ^1.254million pay package in 2009-10 comprised an annual bonus of ^348,184, plus a long-term bonus of ^293,000 from a three-year rolling management incentive scheme. The bonus payments totalled ^641,349 - more than his ^613,000 basic salary.

Olympic 2012 boss David Higgins leaves for Network Rail

The chief executive of the Olympic Delivery Authority is leaving to join Network Rail in a similar position.

David Higgins said that it had been a privilege to lead the organisation and added that he was confident the 2012 games would be a success.

The authority's director of finance Dennis Hone will replace Mr Higgins.

Mr Hone said there would be no change in direction or focus, saying the challenges ahead would be to hit targets and bear down on costs.

2012 chairman Lord Coe also paid tribute to Mr Higgins, praising the experience and leadership skills which he brought to the project.

He said: "David's wealth of experience and his leadership puts us in an excellent position to ensure the athletes of the world have the best possible environment to compete in 2012."

Mr Higgins will leave in February next year.

Adrian Warner, BBC Olympics correspondent said: "This is a big loss, this is a man who did all the deals and the contracts. When I talk to people they say he is crucial. Effectively he drove the bus, put his accelerator down and got people on the way to 2012. What he is saying now is, 'I'm sorry we've not got to the terminus but I'm off lads'. Inevitably that will have an impact."

Mr Higgins said: "It has been a privilege to lead the ODA over the last five years. It is a great organisation with outstanding staff who can be justifiably proud of what they are achieving."

Mr Hone said: "This is a change of chief executive for the ODA but it does not mean a change of direction or focus.

"The challenge ahead of us is to continue to hit our milestones, bear down on costs and complete the venue construction at the same time as maintaining our excellent record on health and safety."

David Higgins appointed Chief Executive

David Higgins has been appointed as our new Chief Executive, succeeding Iain Coucher, who is stepping down at the end of October.

Mr Higgins, who is currently chief executive of the Olympic Delivery Authority (ODA), will take up his new position on 1 February 2011. Mr Higgins is currently a non-executive director of Network Rail, a role he will continue until he starts as chief executive.

Before joining the ODA, Mr Higgins was the chief executive of Lend Lease, an international property and construction company from 1995 to 2002 before joining English Partnerships as chief executive (2003-05).

Network Rail^s chairman Rick Haythornthwaite said, ^We recruited David to the board earlier this year because of his track record in leading large organisations, delivering demanding projects and managing a complex range of commercial interests and wider stakeholder sensitivities. With Iain Coucher deciding it is the right time to leave Network Rail, David emerged as the outstanding candidate to lead Network Rail into a challenging new era following an extensive search process.

^There are significant challenges and opportunities ahead for both Network Rail and the industry such as the comprehensive spending review, the McNulty value for money review and the planning of HS2. Public, passengers, politicians and the industry are demanding a better, safer railway delivered at a lower cost where success will depend on pervasive collaboration. David is well-placed to lead both Network Rail and the industry forward to meet these challenges.^

Commenting on his appointment, David Higgins said: ^It has been a privilege to lead the ODA over the last five years and I am leaving with the Olympic Park on time, within budget and with the finish line in sight.

^Looking forward, Network Rail is one of the most important companies in the UK - an efficient railway underpins a modern economy ^ and therefore a challenge I could not turn down. Network Rail and the rail industry have transformed the train service in Britain in the last eight years - trains run on time and the railway is safer than ever. My priority is to bring Network Rail and the industry closer so that together we can continue to improve service, efficiency and safety and add much needed capacity to a railway network that is nearly full.^

In the interim period prior to Mr Higgins start date and following the departure of Iain Coucher, Peter Henderson will take on the role of acting chief executive. Peter Henderson is currently Director, Asset Management.

An organisation like Network Rail that is so vital to the UK economy needs a top flight executive as its CEO as a nation do we really want a 3rd or 4th rate executive running NR?

Network Rail faces probe into under-reported accidents

Network Rail (NR) has agreed to an independent review of how it reports staff accidents.

It follows concerns that managers may have been encouraged to minimise the number of reported incidents.

The company's chairman, Rick Haythornthwaite, has invited the Railway Safety and Standards Board (RSSB) to review the reporting system.

All injuries, diseases and dangerous occurrences must be logged under existing health and safety laws.

A spokesman confirmed that NR had been operating a system of league tables, whereby managers would have points deducted for such health and safety incidents.

"It was set up with the best of intentions, but appears to have created an incentive to under-report," said the spokesman. "It created perverse incentives."

The Unite union says that these safety records were taken into account when the company's remuneration committee decided to award management bonuses.

"It is still outrageous that senior directors can walk away with huge bonuses when NR wrongly boosted its safety record," said Unite's national officer for rail, Bob Rixham.

NR's seven directors earned ^2.36m in bonuses this year.

"NR's chairman must ensure that part of the bonuses paid to directors are recouped and donated to the transport benevolent fund," added Mr Rixham.

The union claims new data shown to the company in the last fortnight suggests that about 700 health and safety incidents are not reported by contractors every year, on top of the under-reporting by NR managers.

An NR spokesman admitted that there seemed to be a "discrepancy" between the expected number of incidents forecast under industry standards and the number NR actually reports.

"We've had a look. There seems to be a problem with our system, and we want to get to the bottom of this," said the spokesman.

NR says it has now shelved the league tables for reporting of work-related safety breaches.

Unite's health and safety officer will join the RSSB team that is examining the safety culture at NR.

Network Rail executives not awarded bonuses

Network Rail executives will not be paid annual bonuses this year, the rail infrastructure company has announced.

There was an outcry last year when Network Rail awarded its most senior staff more than more ^2m in bonuses.

"Network Rail... will not be paying an annual bonus to its executive directors in respect of the financial year 2010-11," a statement said.

Last year's bonuses came despite the call from Transport Secretary Philip Hammond for financial restraint.

The board of Network Rail suspended the "management incentive framework" for executive directors for this financial year.

It will soon be unveiling a new scheme to take effect from 2011-12 onwards.

"There remained only the question of the basis on which any 2010-11 annual bonus should be awarded," said the remuneration committee's chairman, Steve Russell. "In a decision reached jointly by the remuneration committee and the executive directors, no consideration will be given to any such annual award mechanism and thus no payments will be made."

The bonuses had previously been made up of a yearly component and a three-year rolling bonus.

The announcement to now suspend bonuses for top-tier staff affects nine Network Rail bosses.

"All recognise that the public expect consistently high network reliability and overall service delivery within a strong safety culture before the top leadership of the company should become eligible for payment under any annual incentive scheme," said Mr Russell. "We intend to retain the past arrangements for the annual incentive scheme across all other employee grades for 2010-11 based on challenging targets that were established at the beginning of the year."

Network Rail took over the running of network infrastructure after the collapse of Railtrack in 2002.

The RMT union said it "welcomed" the news on the bonuses, but said the main task now was to he "transform Network Rail into a genuine public body" and away from a private sector ethos.

"RMT looks forward to now securing a pay deal for our members that recognises the hard work they have put in, and the changes to operations that they have agreed, and which will put staff on a firm and secure footing for the future," said RMT general secretary Bob Crow.

NEW EXECUTIVE INCENTIVE SCHEME APPROVED

Network Rail's new executive incentive scheme was approved today following an extensive and through examination by Members (Network Rail's equivalent to shareholders) at a general meeting in London. Under the new scheme the potential annual bonus for executive directors has been reduced by 40%. In addition, a new long-term scheme tied into the outperformance of the company's targets for the current regulatory control period (2009 to 2014, CP4) was also approved.

Steve Russell, chairman of Network Rail's remuneration committee said: ^Network Rail plays a pivotal role in running Europe^s most intensively used rail network with the responsibility of moving almost four million people safely every day. It is a hugely complex business, investing billions each year on improvements, and helping the UK economy to continue its recovery. Having an executive incentive scheme is essential for the company to attract and retain top talent."

The Annual Incentive Plan:
The new annual incentive plan (AIP) has a maximum potential award of 60%.

Steve Russell said: ^The company has this year cancelled directors' annual bonuses and suspended its executive incentive scheme while it underwent a thorough review. This new scheme cuts the potential annual award by 40%, has tough targets, will be independently assessed by our regulator, and will only reward clear, unequivocal success and outstanding performance."

In order for an award to be made under the new annual scheme, two objectives relating to the punctuality of trains (both passenger and freight) and the condition of the infrastructure must be met. The Office of Rail Regulation^s annual assessment of our performance will inform Network Rail^s remuneration committee's judgement. Failure to meet targets in these areas will normally mean no bonus being awarded.

Assuming these hurdles are passed, there are six business goals to be measured against, each making up 10% of the potential award. In addition the remuneration committee will exercise structured discretion taking into account safety as well as passenger, customer and supplier views.

The long-term scheme:
The existing long-term incentive plan (LTIP) has been scrapped and replaced with a long-term gain-share scheme that incentivises the executive directors to outperform regulatory targets for control period 4 (2009-14) and thereby deliver even more savings for the taxpayer.

Steve Russell continued: ^The new long-term scheme will only reward sustained performance that exceeds targets and expectations. Meeting our regulatory objectives and targets over our five-year control period is not enough. Only extraordinary performance can result in the directors sharing in a portion of this success."

One of the key measures of the successful delivery of CP4 is the regulatory target of making cost efficiency savings of ^5.2bn - or 22%. If the company succeeds in delivering above and beyond this ORR target, the top ten executives may be eligible to share in these and other additional savings. This share would be in a range of 0% to 2.6% of whatever extra savings (capped at a maximum of ^600m) are made, with the extent of the extra savings being identified and verified by the ORR. Eligibility will be subject to other key regulatory targets also being met.

Notes to Editors:

Three resolutions were presented at the meeting. The first, to approve the gain-share plan (77% voted in favour). The second, to approve the transition arrangements between the old and new long-term schemes (77% voted in favour). The third to note the new annual incentive plan (83% voted in favour)
A draft of the new management incentive plan (which incorporates the new annual and long-term schemes) is available on the Network Rail website. Some details of the scheme remain to be agreed with the ORR and the final scheme will be published once settled
Any payment under the gain-share scheme will be made in three tranches with 50% of the award paid in July 2014, a further 25% in January 2015 and the final 25% in July 2015. Directors must be employed at each stage to be able to qualify
Any payments already made under the old LTIP scheme will be deducted from any potential award made under the new gain-share scheme