Jarvis bosses face bonus backlash

THE TUC has urged its network of more than 1,000 pension fund trustees to vote against the remuneration report of rail maintenance group Jarvis at this week's annual meeting.

It follows outrage after it was revealed in the latest accounts that more than £ 800,000 in bonuses was paid to disgraced directors in 2002 - the year of the Hatfield train crash that killed seven people.

TUC general secretary Brendan Barber said: 'If company boards are not going to link pay to performance, then this duty falls on investors. Pension fund members are fed-up with seeing their investment and trust in UK plc being abused and will want their fund managers to take tough action.'

A sizeable shareholder revolt is likely at Thursday's meeting.

Apart from the TUC's pension fund trustees, who look after funds worth more than £260 million, the influential Association of British Insurers has already issued a 'red top' alert to show its highest level of concern about management failings and bonus awards. These include £260,000 to Paris Moayedi, who was chief executive at the time of the crash but has since resigned, while his successor, Kevin Hyde, picked up £137,000.

Jarvis, chaired by former London mayoral candidate Stephen Norris, says it was contractually obliged to pay the bonuses.