Network Rail bonuses, Iain Coucher's resignation and related posts

[whole diary]

[Electric train]

http://news.bbc.co.uk/1/hi/business/10339375.stm

Is this a good or bad thing?

Personally I like Coucher, he has drive, vision and good leadership.  I feel this is a black day for not only Network Rail but the Rail Industry.  The Unions don't like him but that because he stood up to them and actually won his argument with the staff.

Possibly the Government will get an easier time as I feel Coucher was able to take them head on, especially as NR^» (Network Rail - home page) is an anathema to the Tory's

[Chris from Nailsea]

From the BBC^» (British Broadcasting Corporation - home page):

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^» (Office of Rail and Road formerly Office of Rail Regulation - about)) 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.

[grahame]

Let's get this in perspective. 

2.4 million would buy an hourly TransWilts service for 6 years - that's going to be around 90p in subsidy per journey.  Each single journey would save 20 to 30 minutes on people's journeys - if we take 25 minutes, you're looking at a saving of 66 million minutes.  As I recall from a local road enquiry, a minute's delay is priced at 44p in economic terms, so that's 29.33 million pounds in benefit from the 2.4 million in subsidy.

[Electric train]

Network Rail has a turn over per annum greater than many  countries, the renewals budget in CP4^▸ (Control Period 4 - the five year period between 2009 and 2014) B^6 a year, NR^» (Network Rail - home page) is not a small tin pot company, if we reflect on the 8 years of NR while it is not all down to NR the company has improved train performance massively.

There is some way to go yet to do the renewals and maintenance so it has less impact on train services but a lot or work has been done with this.

NR directors have vision (some of which the Unions and some employees don't like), the determination to provide a world class railway fit for the 21st century you do not get people with the qualities by paying them ^5.40 an hour and ^100 bonus.

The MP^▸ (Member of Parliament)'s are all bent out of shape because their nice little earner has been rumbled

[James Vertigan]

They're advertising for a new CEO^▸ (Chief Executive Officer) in the Appointments section of today's Sunday Times if anyone's interested!

[Electric train]

Could not afford the pay cut 

Mr Coucher will be a tough act to follow

[6 OF 2 redundant adjunct of unimatrix 01]

im going to apply 

que the abuse

[SandTEngineer]

Could not afford the pay cut 

Mr Coucher will be a tough act to follow

Mmm. That may be your opinion but I can think of a few thousand NR^» (Network Rail - home page) people that won't be sad to see him go.....

[Electric train]

Could not afford the pay cut 

Mr Coucher will be a tough act to follow

Mmm. That may be your opinion but I can think of a few thousand NR^» (Network Rail - home page) people that won't be sad to see him go.....

Said tough act to follow ...... not necessarily that he was right or wrong

[grahame]

They're advertising for a new CEO^▸ (Chief Executive Officer) in the Appointments section of today's Sunday Times if anyone's interested!

Now wouldn't it be interesting if someone who's prior rail credentials were as a passenger / passenger's champion took the role?

[JayMac]

They're advertising for a new CEO^▸ (Chief Executive Officer) in the Appointments section of today's Sunday Times if anyone's interested!

Poisoned chalice. NR^» (Network Rail - home page) will be gone before the end of this Parliament.

[JayMac]

From the BBC^» (British Broadcasting Corporation - home page):

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."

[JayMac]

From the Morning Star:

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^▸ (National Union of Rail, Maritime & Transport Workers) 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."

[Chris from Nailsea]

In a slightly less emotional article, from the Telegraph:

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^» (Transport Salaried Staffs' Association - about) 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.

[Chris from Nailsea]

As these various inter-related issues seem to have become quite topical just now, I've taken the opportunity to merge various previous topics here, purely in the interests of continuity.  However, as usual, I've left the original headings in each of the individual posts - just for clarity!

C.