England is new NR Asset Management Director

This from Network Rail...

Network Rail has promoted Jerry England to the role of group asset management director. He was formerly the group director of signalling and power asset management.

As well as working for Network Rail, chartered engineer Mr England has worked for the Highways Agency and Thames Water and will be focusing on developing more customer driven and efficient management of the company’s asset base.

Services provided by the asset management team are provided to customers including Network Rail’s devolved routes, as well as operations and infrastructure projects...

Mr England will take on the role with immediate effect, reporting to Network Rail’s chief executive David Higgins. 

NR turns to Ford... again for new Chairman

This from Stockmarketwire.com...

Professor Richard Parry-Jones is to be the next chairman of Network Rail.

It is his intention to appoint a non executive public interest director to its Board and implement a series of changes to its membership structure designed to better hold the Board to account.

Another former Ford man at the helm, following in the steps of Ian McAllister (hopefully his after dinner anecdotes won't be as dull! Ed)

Will NR's new board live up to the fine words?

An interesting challenge for Keith Ludeman, currently Chief Executive of Go-Ahead.

Regular Eye readers will recollect that Network Rail announced in February that the Permataned one would be joining Network Rail's board, as a non-Exec, upon his retirement from Go-Ahead in July of this year.

Welcoming the appointment NR Chairman Rick Haythornthwaite said:

"Keith Ludeman brings to Network Rail decades of experience of leadership in Britain’s transport industry. The addition of him to the board will provide first-hand, passenger-focused expertise which will help Network Rail on its journey to becoming ever more responsive to its customers and passengers."

Meanwhile, on today's railway, Go-Ahead franchise London Midland has announced its intention to slash ticket office opening-hours at 87 stations, generating predictable fury from the aforementioned 'customers and passengers'.

Indeed Anthony Smith of Passenger Focus issued the following words on the proposed closures today:

“Times are difficult and it’s important that train companies make best use of their resources. London Midland has done a good job in talking to its passengers about its plans but the message back is clear. Passengers were almost unanimous in their request for staff at the station, raising concerns about ticket machines and the need for staff for advice and assistance on ticket sales.

“We fear these plans will lead to passengers paying more for their tickets than they should. Ticket vending machines are important, but while they don’t offer all ticket types or provide advice to ensure passengers get the cheapest fares, there will be a need for station staff.

“Finally, passengers want staff on hand for help on the station and for security reasons. For all these reasons we’re calling on London Midland to address the concerns passengers raised.”

Eye looks forward to seeing just how 'passenger focused and responsive to customers' NR's new board member can be!

Network Rail ensures equality of experience for all!

Exciting news from Network Rail!

Captain Permatan has been appointed a non-Executive Director of the not for profit company!

Rick Haythornthwaite said: "Keith Ludeman brings to Network Rail decades of experience of leadership in Britain’s transport industry. The addition of him to the board will provide first-hand, passenger-focused expertise which will help Network Rail on its journey to becoming ever more responsive to its customers and passengers."

Indeed!

No doubt London Midland, Southern and SouthEastern passengers are particularly delighted by this exciting news...

Happy in the knowledge that Go-Ahead levels of 'passenger-focused' responsiveness will soon become standard across the national network.

UPDATE: This from Steve Strong...

Could this be the same Captain Permatan who last week warned that rail industry profit margins are unsustainable?

Perhaps the grass is greener on the infrastructure side? (shurely oranger? Ed)

EDM calls on NR Members to block bonuses

Halifax MP, Linda Riordan, has sponsored the following Early Day Motion:

"That this House views with deep concern the decision of Network Rail Board to pay senior management a total of £2.4m in bonuses for 2009/10; notes that Network Rail is heavily reliant on taxpayer funding; further notes that the decision was reported in a week when everyone was asked by the Government to share the burden of reducing Britain's deficit; considers such payments as being unjustified and inappropriate and calls on the public members of Network Rail to vote against such bonus payments at the impending Network Rail AGM."

Sadly if Coucher and co wouldn't listen to the ORR or the Secretary of State for Transport then Eye doesn't hold out much hope for this succeeding.

After all NR's Public Members are famed for their ability to hold the 'private' company to account.

On the plus side - at least it affords a further opportunity for MP's to show their utter contempt for NR's money-grubbing directors

Network Rail directors show restraint

Eye salutes the restraint shown by Network Rail's directors.

Paid a mere pittance these noble figures bestride our industry like veritable colossi.

So it is only right that their paltry salaries should be boosted to enable them to put bread on the table for their starving families.

With total annual bonuses for the six top directors amounting to a piffling £1.34 million, it is surely only right that they should also receive management incentive bonuses adding up to £906,000, making a total of more than £2.4 million.

After all - just how many Iainlands can you buy for such a derisory amount?

UPDATE: This from Steve Strong...

It's Network Rail's remuneration committee that you should be having a go at!

They set these outrageous amounts.

And of course the NR Board could always turn the bonuses down. But don't hold your breath.

UPDATE: This from Philip Hammond via the BBC...

"Network Rail is of course a private company," said Mr Hammond. "But one that is dependant on taxpayer funding."

"In the week when everyone has been asked to share the burden of reducing Britain's deficit, people will rightly be asking how Network Rail's top executives feel this is appropriate."

UPDATE: This from Sir Humphrey Beeching...

No need to hold your breath.

My departmental colleagues tell me that NR Directors intend taking their full bonus entitlement.

UPDATE: This from a Time Lord...

The BBC story on NR's bonuses uses an unusual picture of the company's Chief Executive.

Do you think they had this lookalike in mind?


One is a feared genius whose creatures are made in their master's image, they seek to rule the universe and those who do not obey are immediately exterminated. The other of course invented the Daleks.

Do you think they are related? (No! Ed)

Coucher worth every penny!

This guff from Saturday's Times...

The boss of Britain’s railways, who is paid more than four times as much as the Prime Minister, has said that he would refuse to take a pay cut and that he is worth every penny of his £613,000 salary.

Evidently we are all in this together!

Apart, of course, from some of us.

UPDATE: This from Jumbo...

No doubt people who work in a company that perpetuates the myth that trains up to 10 minutes late are actually on time find it equally easy to have illusions about their salary level.

"No executive bonuses" for NR Board

Oh dear!

What senior industry figure went on the record with this damning view:

“I do not believe that Network Rail executives should receive a penny in bonuses in any year when a worker dies. This year there have been three deaths... So in my opinion there should be NO executive bonuses.”

More over at Nigel Harris' blog...

A busy weekend for NR's Board...

This just in from the ghost of Sir Peter Parker...

Being able to pass through doors I thought it worthwhile visiting this weekend's meeting of NR chiefs.

I expected that the topics that required such immediate and urgent attention might be Network Rail's quite astonishing debts or the recent setbacks to a number of major programmes or even the anticipated ORR performance assessment which I understand may be somewhat critical.

So. Imagine my surprise to read in yesterday's Sunday Times that no less a figure than Petrol-head Hammond has written to Ricky Haystacks, NR's Chairman, suggesting that NR bosses be "sensitive" about remuneration.

I tried to whisper, from beyond the grave, that NR's board should set a national example, in this time of great crisis, by agreeing to cut their pay back to BRB levels - index-linked of course.

However, I fear my waning powers on this earth had little effect on the weekend's debate.

NR board appointment fires up reformers zeal

Yesterday's Independent on Sunday reported that there is disquiet amongst NR members about the proposed appointment of Janis Kong to the company's board.

The decision is due to be rubber stamped in July at NR's Annual General Meeting but with reform to Network Rail governance mentioned in both the Tory and newly resurgent LibDem manifestos this could become a cause celebre.

Kong was a non-Exec at RBS when Fred the Shrek ran the doomed banking group and she was also on the remuneration committee that boosted the failed banker's pension pot by £20m.

NR's members, it should be remembered, are supposed to be the equivalent of shareholders in the not-for-profit company. Their disquiet is expected to be given voice at a members meeting tomorrow.

Despite these concerns NR remains bullish about the proposed appointment:

"When the board decided to invite Janis Kong to join them they did so in full expectation that a number of members would object on point of principle."

Did what!?!

The board of which real private sector company would dare treat its shareholders in such a cavalier fashion?

Thank goodness Network Rail has moved on from being an "arrogant" company.

Eccles to join NR Board - but for how long?

Exciting news from Network Rail!

The company hopes to appoint two new non-Exec directors, subject of course to the pliant Members rubber stamping the appointments in July.

So who are these giants of corporate governance?

Why none other than ODA Chief Executive David Higgins and railwayman's railwayman Graham Eccles.

Eccles at least should bring some much needed board focus on the needs of train operators.

But what's this?

Is NR not keen to give the uber-operator too much visibility?

Study these pictures closely, contained in NR's email release announcing the appointments, and see if you can find Mr Eccles amongst the sea of Higgins...


Looks like Network Rail spin machine is already starting to airbrush the Silver Fox out of existence.

UPDATE: This from Steve Strong...

Eye is being a little unfair.

Obviously this is part of NR's determination to become economic and efficient.

If all NR non-Execs were called Higgins it would save a fortune on stationery costs.

UPDATE: This from NR's Internet Rapid Rebuttal Unit...

This is what happens when I don't check releases before they go out.

Rest assured it was put right in minutes of the email going out and the website version is correct.

Of course it's not a surfeit of Higginses we have at Network Rail, but of Eccleses.

Graham, of course, joins his brother Richard who is our head of route planning

UPDATE: This from Driver Potter...

Right, I want to make things clear at the outset that I'm only asking because I don't want to look an idiot later on.

The Missing Eccles isn't the same as The Famous Eccles, is he?



Eye is sure NR's Eccles will be paying a similar amount of attention to times written down on a piece of paper...

Coucher - Laird of all he surveys?

Has there been a falling out between Network Rail and the Observer?

This from Nick Cohen in yesterday's paper...

Ever since the Clearances, the nouveaux riches have aped the aristocracy and paid to play the highland gentleman. Coucher stood out from his predecessors, however. The new laird of Keills, the monarch of his very own glen, was, to all outward appearances, an undistinguished civil servant on a second-rate railway board.

Ouch!

UPDATE: This from Steve Strong...

Have any of Eye's readers noticed this extraordinary topographical lookalike?

Perhaps Mr Coucher aspires to live the lifestyle of Sir Beardie of Bendydildo?

UPDATE: This from Is 1A03 out of Chester yet, Bert?...

Now they're all getting in on the act!

NR appoints new Non-Execs

This just in from Network Rail...

Network Rail announces today enhancement of its board with the appointment of two new non-executive directors - Lawrie Haynes and Janis Kong.

Lawrie Haynes is a successful chairman and chief executive with a heavyweight CV that includes:

• currently the president - nuclear, Rolls-Royce
• former chief executive of White Young Green plc (2007-2009)
• BNFL plc (2003-2007), main board director and former chief executive of British Nuclear Group
• ex-chief executive of the Highways Agency (1994-1999)

Mr Haynes is also on the board of trustees for the RAF Benevolent Fund and chairman of its pension fund.

His general business experience and, in particular, his mission-critical project and safety management expertise will be a valuable addition to the Board.

Janis Kong has a long history of operating businesses where customer relationships have been critical to success and has held non-executive directorships with large plcs:

• non-executive director at Kingfisher plc, Visit Britain, Portmeirion plc, Forum for the Future
• former main board director of BAA plc (2002- 2006)
• former chairman Heathrow Express 2005 to 2006
• former chairman of Heathrow Airport (2001-2006)
• managing director of Gatwick airport (1997-2001)
• previous non-executive directorship : RBS

Announcing the appointments, Network Rail’s chairman, Rick Haythornthwaite, said: “I believe that the current cadre of non-executive directors has done an excellent job supporting and counselling the executive management team in the journey from bringing Railtrack out of administration to a functioning, capable railway that is operating at record levels of safety, punctuality, reliability and capacity.

“Today we face new challenges and opportunities and the composition of the board must reflect that. The appointment of these highly-experienced and capable individuals give Network Rail renewed corporate oversight. This will be vital as we continue our job to deliver a high-performing, bigger and better railway."

Recognising the need to contain the size of the board and in order to effect a smooth transition, it is planned that Ian Buchan and Yvonne Constance will stand down from the board between now and the AGM in July.

UPDATE: Over at Tunnel Vision they remain to be convinced...

Cynics will conclude that both Kong and Haynes offer Network Rail a ’safe pair of hands’ who will not upset NR’s senior executives by relating their remuneration to real performance...

The Kraken Wakes

And not before time!

This from tomorrow's Daily Telegraph...

Network Rail's much-criticised corporate governance will be challenged formally later this month when a dozen of the company's members seek a major overhaul.

Interesting that this challenge is taking place so early in the tenure of Rick Haythornthwaite, NR's new chairman.

Apparently the passenger and freight operators expect great things of Rick.

The Eye watches with interest.

NR flounders defending the indefensible

This from The Times...

Network Rail has mounted a campaign to defend its controversial bonus scheme, under which the directors are due to collect more than £1 million funded largely by the taxpayer.

What bit of this don't Cornell and the NR Board get?

There is a recession on, jobs are being lost across the industry/country and NR directors still believe that they have a God given right to dip into our pockets to top up their existing, substantial, salaries with over £1m in bonuses.

Meanwhile the £9bn flagship project by which their success is being judged has turned into a complete and utter shambles.

It's no good whinging it's unfair. This is what you signed up for when you took the job.

Perhaps it would help if The Fact Compiler explained what the industry and country really think in words of one syllable.

"You are not worth it!"

For pity's sake back off now, take the hit and retain some vestige of honour and credibility.

Silly money

Oh dear. Network Rail is at it again.

The Borderlands line connects Bidston to Wrexham, a distance of 27 miles.

Merseytravel and local user groups are keen to see the line electrified to link up Deeside with Liverpool.

Merseytravel consultants have costed the job at £66m.

Alas, Network Rail has quoted a price of £207m, to predictable local fury.

A spokesman for Network Rail said: “Merseytravel is well aware that the methodology used in the first two reports on this project were flawed.

“They did not take into account everything that needed to considered.”

The Fact Compiler can only assume that Merseytravel omitted to consider NR 'Bonus Trough Weighting'?

UPDATE: An 'anonymous' reader has contacted The Fact Compiler.

He writes:

"Oh dear - more factual inaccuracy and misplaced vitriol from Railway Eye - what a suprise!

"The things that Merseytravel missed that caused the price to increase were small things like:

• The new stations required
• The platform lengthenings needed
• Getting up from behind the desk and basing a quote on on-site surveys
• Updating increases in raw materials costs since three years ago (when the desktop study was done)

"A few small things then!"

The Fact Compiler hopes Merseytravel and WAG understands.

Keep it in the family

Network Rail strengthens Board with new appointments

The company's Board will soon be strengthened in preparation for CP4, with three new additions to the leadership team. Robin Gisby, director operations and customer services, Simon Kirby, director infrastructure investment, and Paul Plummer, director planning and regulation, will be promoted and become executive directors with effect from 1 October 2008.

Presumably NR will need to issue an OJEU for a bigger trough?