Network Rail has paid out £630,000 to four of its executive directors as a portion of their long-term incentive plan (L-tip) to reflect the organisation’s performance in the period 2009-12.
Under the terms of the 2009 L-tip, the four directors qualified for a 100% payout as a result of the extensive savings made by the organisation.
However, Network Rail’s remuneration committee decided to reduce the award by 20% to take into account specific safety and train performance issues.
The committee also decided that the payments should be phased, with 60% being paid now, and the balance to be reviewed at the end of March 2014.
Patrick Butcher, finance director, was awarded £168,000, while Robin Gisby, managing director of network operations and Simon Kirby, managing director of infrastructure projects, were awarded £158,000, and Paul Plummer, group strategy director was awarded £148,000. Chief executive David Higgins did not qualify because he was not with the organisation in 2009.
A decision on an annual bonus for the executive directors for 2012 is expected in the summer. According to Network Rail, missed targets for train performance are expected to have a significant impact on any potential award.
Richard Parry-Jones, chairman at Network Rail, said: “Not everything has been perfect, and the 20% reduction we have made reflects that.
“But it would be flying in the face of reality not to acknowledge the real progress Network Rail has made in this period, and these payments reflect and recognise that success.”
