Anger over £1m pay deals for rail bosses as fares keep going up

Pay figures emerge as poll of passengers reveals commuter dissatisfaction

Rail bosses are being handed pay packets worth as much as £1.4m while commuters are being hit with rising ticket prices, according to figures published yesterday.

Information obtained under the Freedom of Information Act showed that eight executives on the East Coast line, where services are being run by the public sector, were revealed to be on £100,000 or more, with the highest paid on a salary of between £161,000 and £180,000.

Two other East Coast directors are being paid between £121,000 and £140,000 and five more between £100,000 and £120,000 a year. The revelations are likely to cause anger among commuters, who were hit with above-inflation price hikes less than two months ago.

And executives at Go-Ahead, FirstGroup and Network Rail were getting deals worth more than £1m when assorted bonuses and other benefits were taken into account.

Meanwhile, a passenger satisfaction survey published today by consumer magazine Which? shows that more than half of the companies running Britain’s train network were given scores of less than 50 per cent. The research showed that only 22 per cent of train users felt the service they received was improving, despite rising ticket prices.

Figures from other operators showed more six-figure salaries being doled out in boardrooms across the industry. The 10 directors at CrossCountry, which runs services mainly in the West Midlands, were paid £795,000 in total in 2011 with the highest paid taking home £222,000 including pension contributions.

It was revealed last month that ScotRail boss Stephen Montgomery received a £54,000 pay rise, taking his salary up to £333,000 in 2012.

The company is owned by FirstGroup, where chief executive Tim O’Toole was paid £846,000 last year, plus a £134,000 pension contribution and £75,000 as benefits in kind. Accounts showed that, in the year ending March 2012, FirstGroup made an operating profit of £110.5m on its UK rail business.

Network Rail, which is currently fighting to meet targets on punctuality, paid its chief executive Sir David Higgins an annual basic salary of £560,000, while finance director Patrick Butcher was on £382,000. Two other executives, Robin Gisby and Simon Kirby, were paid salaries of £360,000.

National Express chief executive, Dean Finch, is paid a salary of £550,000 in a deal which was worth more than £1.4m in 2011 with bonuses and other benefits. National Express group finance director, Jez Maiden, is on £420,000 a year and his deal was worth more than £1m with additional benefits. Chairman John Devaney, who is about to stand down, was on £225,000.

Accounts also showed that Go-Ahead chief executive David Brown’s salary was £510,000 but his deal was worth £900,000 after a bonus was added, with finance director Keith Down on £326,000.

Manuel Cortes, leader of the TSSA rail union, said: “One of the reasons we have the highest rail fares in Europe is because we have created an army of Fat Controllers since John Major sold off British Rail 20 years ago.”

None of the train companies responded to requests for comment.

Fast track: The fat controllers

Tim O’Toole

The FirstGroup chief executive’s remuneration package was worth more than £1m last year. The American executive left a lucrative job with London Underground – where he earned the CBE for his response to the London 7/7 bombings – to join FirstGroup.

Sir David Higgins

The Network Rail boss waived his right to a bonus of up to £340,000 under ministerial pressure in 2012. Justine Greening, then Transport Secretary, criticised plans to allow him as much as 60 per cent of his £560,000 salary.

Dean Finch

National Express’s Group Chief Operating Executive was reportedly allowed a bonus of up to 150 per cent of his £550,000 pay to stay at the firm after being approached by other groups.

David Brown

The Go-Ahead chief, who is paid £510,000, has spoken recently of the challenging politics inherent in an industry receiving public funding.

Jez Maiden

The Finance Director at National Express, who has previously served in the same role at Northern Foods, British Vita and Britannia Building Society, is paid a salary of £420,000.

Start your day with The Independent, sign up for daily news emails
Have you tried new the Independent Digital Edition apps?
ebooks
ebooksA special investigation by Andy McSmith
Life and Style
Powdered colors are displayed for sale at a market ahead of the Holi festival in Bhopal, India
techHere's what you need to know about the riotous occasion
Arts and Entertainment
Larry David and Rosie Perez in ‘Fish in the Dark’
theatreReview: Had Fish in the Dark been penned by a civilian it would have barely got a reading, let alone £10m advance sales
News
Details of the self-cleaning coating were published last night in the journal Science
science
News
Approved Food sell products past their sell-by dates at discounted prices
i100
News
Life-changing: Simone de Beauvoir in 1947, two years before she wrote 'The Second Sex', credited as the starting point of second wave feminism
peopleHer seminal feminist polemic, The Second Sex, has been published in short-form to mark International Women's Day
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs General

Recruitment Genius: Finance Assistant / Credit Controller

£16000 - £18000 per annum: Recruitment Genius: They are an award-winning digit...

Ashdown Group: Senior VMware Platform Engineer - VMware / SAN / Tier3 DC

£45000 - £55000 per annum + benefits: Ashdown Group: Senior VMware Platform En...

Recruitment Genius: Purchasing Assistant

£10000 - £16000 per annum: Recruitment Genius: A distributor of specialist ele...

Recruitment Genius: Sales Ledger Assistant

£17000 - £19000 per annum: Recruitment Genius: A distributor of specialist ele...

Day In a Page

Homeless Veterans campaign: Donations hit record-breaking £1m target after £300,000 gift from Lloyds Bank

Homeless Veterans campaign

Donations hit record-breaking £1m target after huge gift from Lloyds Bank
Flight MH370 a year on: Lost without a trace – but the search goes on

Lost without a trace

But, a year on, the search continues for Flight MH370
Germany's spymasters left red-faced after thieves break into brand new secret service HQ and steal taps

Germany's spy HQ springs a leak

Thieves break into new €1.5bn complex... to steal taps
International Women's Day 2015: Celebrating the whirlwind wit of Simone de Beauvoir

Whirlwind wit of Simone de Beauvoir

Simone de Beauvoir's seminal feminist polemic, 'The Second Sex', has been published in short-form for International Women's Day
Mark Zuckerberg’s hiring policy might suit him – but it wouldn’t work for me

Mark Zuckerberg’s hiring policy might suit him – but it wouldn’t work for me

Why would I want to employ someone I’d be happy to have as my boss, asks Simon Kelner
Confessions of a planespotter: With three Britons under arrest in the UAE, the perils have never been more apparent

Confessions of a planespotter

With three Britons under arrest in the UAE, the perils have never been more apparent. Sam Masters explains the appeal
Russia's gulag museum 'makes no mention' of Stalin's atrocities

Russia's gulag museum

Ministry of Culture-run site 'makes no mention' of Stalin's atrocities
The big fresh food con: Alarming truth behind the chocolate muffin that won't decay

The big fresh food con

Joanna Blythman reveals the alarming truth behind the chocolate muffin that won't decay
Virginia Ironside was my landlady: What is it like to live with an agony aunt on call 24/7?

Virginia Ironside was my landlady

Tim Willis reveals what it's like to live with an agony aunt on call 24/7
Paris Fashion Week 2015: The wit and wisdom of Manish Arora's exercise in high camp

Paris Fashion Week 2015

The wit and wisdom of Manish Arora's exercise in high camp
8 best workout DVDs

8 best workout DVDs

If your 'New Year new you' regime hasn’t lasted beyond February, why not try working out from home?
Paul Scholes column: I don't believe Jonny Evans was spitting at Papiss Cissé. It was a reflex. But what the Newcastle striker did next was horrible

Paul Scholes column

I don't believe Evans was spitting at Cissé. It was a reflex. But what the Newcastle striker did next was horrible
Miguel Layun interview: From the Azteca to Vicarage Road with a million followers

From the Azteca to Vicarage Road with a million followers

Miguel Layun is a star in Mexico where he was criticised for leaving to join Watford. But he says he sees the bigger picture
Frank Warren column: Amir Khan ready to meet winner of Floyd Mayweather v Manny Pacquiao

Khan ready to meet winner of Mayweather v Pacquiao

The Bolton fighter is unlikely to take on Kell Brook with two superstar opponents on the horizon, says Frank Warren
War with Isis: Iraq's government fights to win back Tikrit from militants - but then what?

Baghdad fights to win back Tikrit from Isis – but then what?

Patrick Cockburn reports from Kirkuk on a conflict which sectarianism has made intractable