The International Business Times recently ran an article claiming that a member of Network Rail’s governing body has said its bosses ‘do not deserve bonuses to bring the company in line with the deputy prime minister’s crackdown on top executive pay’.
In 2010, Network Rail’s new chief executive Sir David Higgins stopped bonuses for bosses after it ‘was revealed executives were earning 60% on top of their salaries’.
Lord Berkeley, a public member of Network Rail, has said in a letter that executives should ‘renounce bonuses’.
He said it was unfair that a company ‘that cannot effectively go into liquidation’ could pay bonuses of up to £600,000.
The letter read:
‘NR’s position, as a company which cannot effectively go into liquidation and in which executives can therefore expect a greater degree of job security, does not appear to be recognised by the Remuneration Committee (which sets the bonuses) which also argues the need for higher salaries and bonuses to attract the right calibre of people.
‘Whilst having severe doubts that NR’s performance will justify any bonuses for this year, there is also the question of public perception.’
In response to the letter, Network Rail said:
“The role of members at Network Rail is to hold the board to account. Lord Berkeley has raised some important questions and these – and indeed any other questions – will be addressed by our board at the members’ meeting.”
yeah too right. no wonder steve hatchitman featherstone has took promotion. great fantastic.i loose my bonus but get paid more money. looks like mtnce will not reach their taget for bonus.