The national rail regulator has warned Network Rail (NR) bosses to forego their six figure annual bonuses if they are responsible for fatal crashes on the network. a leaked letter reveals today.
It came as the furore continued over the bonus scheme under which the most senior staff could collect up to 60 per cent on top of their salaries of between £360,000 and £560,000.
Richard Price, chief executive of the Office of Rail Regulation (ORR,) includes the warning in a letter - leaked to the TSSA transport union - to Graham Eccles, chairman of NR's remuneration committee which decides the bonuses.
He states "it would be helpful to be clear that, in the event of a catastrophic accident for which NR was culpable, no bonuses would be paid."
Manuel Cortes, TSSA general secretary, said: "There is something morally repugnant about executives of what is in effect a publicly funded company having to be told by a regulator to forego their huge annual bonuses in the event of a fatal crash they bear responsibility for."
NR plans to pay chief executive Sir David Higgins and five other directors a total of £18 million in annual and long term bonuses over the next three years.
Mr Cortes added: "We believe Sir David is trying to drive through higher ethical standards at NR but this demand for total bonuses of £18 million over the next three years is simply breathtaking and risks jeopardising all his efforts to date."
NR rigorously defends the bonus scheme. A spokesman said: "Bonuses are not a right, they must be earned and only then if exacting targets based on a successful and better performing railway are met."
