Network Rail has approved a new long-term inventive plan (L-tip) for executive directors at its annual general meeting.
The majority (86%) of members, the organisation’s equivalent of shareholders whose job it is to hold the board to account, approved the new plan on 18 July.
The L-tip will recognise outstanding and exceptional performance over the three years to 2015, with any future awards measured against train performance, savings made for the taxpayer and the successful delivery of congestion-easing projects. ??
It was developed through discussions with members at a series of meetings and workshops.
Network Rail is required to have a long-term incentive scheme in place as a regulatory license condition and the Office of Rail Regulation has confirmed that it meets these conditions.
Richard Parry-Jones, chairman of Network Rail, said: “As our annual bonus announcement earlier this year clearly demonstrated, Network Rail senior executives are rewarded only when exceptional performance exceeds tough targets, which have been approved by our members through an open and transparent process.
“If targets are not met, or safety compromised, no bonuses are paid.
“Discussions with our members and stakeholders, and feedback from customers, highlight their concerns about the cost of operating Britain’s railways and the cost of fares. These rank as highly in their minds as the punctuality of the train service.
“The proposed new long-term incentive scheme addressed these concerns, with a focus on safely bringing down the cost of the railway while building capacity for the future.”