Union attacks £700,000 Rail bonuses

NETWORK Rail chief executive John Armitt's £450,000 annual salary could be topped up by a £180,000 half-year bonus, it has emerged. He is one of five executives in line for payouts totalling £700,000 if they meet performance targets at Network Rail, which was formed to replace Railtrack last October.

The 'incentive plan' was fiercely criticised by rail unions and passenger groups. They reacted with fury after it was revealed that the bonuses for the company's first six months could be as high as 80% of wages for the same period.

Deputy chief engineer Iain Coucher, whose annual salary is £400,000 a year, could receive a six-month bonus worth £160,000. Group finance director Ron Henderson, project and engineering director Peter Henderson and safety director Chris Leah, who earn £300,000 each, would get £120,000. The scheme is to be extended to cover five times as many executives at the 'not-for-profit' company.

A spokesman for train drivers' union Aslef said: 'It is extraordinary that the fat cat culture which helped to cripple Railtrack should be making a re-emergence in Network Rail. The senior executives are already paid sufficient to ensure they reach performance targets without needing the added inducement of massive bonuses.'

A Rail Passenger Council spokesman said: 'Let's just hope that passengers benefit from this incentive scheme.'

Network Rail moved to defend the bonus scheme, saying the money would be paid only if tough targets for train services were met. 'It is essential to attract and retain senior executives of the highest calibre,' a spokesman added.

No bonus figure has yet been worked out for 2003-04. But a Network Rail spokesman said it would be different to this year's and would involve about 25 more executives.