As customers deal with record tariff rises, cancellations, and strikes this year, train executives are expected to earn multi-million pound pay packages.
Some bosses may make up to £4.2 million, according to a Daily Mail investigation, despite a year marred by bad punctuality, engineering work, and the worst strikes disruption in decades – with more to come.
Due to the government’s £16 billion bailout of the railroads during the epidemic, public funds have been used to subsidise the generous salaries. Additionally, the largest-ever rate rises of between 6 and 8% are anticipated for customers next year.
Despite this, FirstGroup CEO Graham Sutherland is set to receive a compensation package worth up to £3 million.
Avanti West Coast, which the company controls 70% of, cancelled one out of every six services in the four weeks leading up to July 23. Additionally, until further notice, it has scaled down services between Manchester and London.
Christian Schreyer, the CEO of Go-Ahead, may make up to £1.37 million this year. Southern, Great Northern, Thameslink, and Gatwick Express are all owned by Go-Ahead to the tune of 65% each. If he meets his performance goals, Rupert Soames, chief executive of Serco, which runs the Caledonian Sleeper and partially owns Merseyrail, may receive £4.2 million.
MTR Corporation, located in Hong Kong, which operates London’s brand-new Elizabeth Line and owns 30% of South Western Railway, is led by Dr. Jacob Kam Chak-pui.
His total compensation last year, including bonuses, was close to £1.3 million, and he is expected to get a similar sum this year, including a base salary of close to £900,000.
The board of Deutsche Bahn, which ultimately controls the London Overground, Chiltern Railways, and CrossCountry, received £4.1 million last year, an increase from £3.8 million in 2020. They anticipate a similar outcome this year.
I don’t have anything against large pay packages, but what we’re witnessing on the trains today is anything from first-class as my people struggle to even obtain a seat on rush hour trains, said Tory MP Greg Smith, who serves on the Commons transport committee.
All operators are represented by the Rail Delivery Group, which stated: “We need to pay wages that ensure we can recruit the greatest staff.”
‘In keeping with our shareholder-approved policy, the Remuneration Committee thoroughly reviewed the performance of the whole Group during the year together with the experience of shareholders and our broader stakeholders,’ a FirstGroup spokeswoman said.
“Executive compensation is tied to rigorous expectations,” a Go-Ahead spokeswoman stated. “The company’s remuneration committee will take into consideration aspects including operational success and the pandemic in deciding a final figure.”
Remuneration must be acceptable and in line with the company’s aims, objectives, and performance, according to MTR’s policy, a spokeswoman said.
‘Serco is a not merely a rail firm, and our rail business accounts for less than 5% of our sales,’ a representative for the company stated.
“Serco’s revenues have increased by 50% and profits by 234% since 2017; we have received £20 billion in orders versus £17 billion in sales, in a market expanding at around 3% per year.”
All operators are represented by the Rail Delivery Group, which said: “These individuals are operating large, complicated businesses that operate all over the world, producing tens of thousands of British jobs and supporting the economy.”
“Like any sector, we need to pay wages that allow us to attract the greatest personnel,” the statement goes.