Train bosses are in line to receive multi-million pound pay packages this year as passengers face record fare hikes, cancellations and strikes.
A Daily Mail investigation reveals some executives could earn as much as £4.2 million despite a year plagued by poor punctuality, engineering works and the worst strikes disruption in decades – with more to come.
The Government bailed out the railways to the tune of £16 billion during the pandemic, meaning taxpayers’ money has helped subsidise the bumper pay packets. And next year passengers can expect fare increases of between 6 and 8 per cent – the largest on record.
Graham Sutherland (pictured), the CEO of FirstGroup, is in line for a remuneration package worth up to £3 million
A Daily Mail investigation reveals some executives could earn as much as £4.2 million despite a year plagued by poor punctuality, engineering works and the worst strikes disruption in decades
The Government bailed out the railways to the tune of £16 billion during the pandemic, meaning taxpayers’ money has helped subsidise the bumper pay packets
Despite all this, Graham Sutherland, the CEO of FirstGroup, is in line for a remuneration package worth up to £3 million.
The firm owns 70 per cent of Avanti West Coast, which cancelled one in six services in the four-weeks to July 23. It has also reduced services between Manchester and London until further notice.
Boss of Go-Ahead, Christian Schreyer (pictured), could earn up to £1.37 million this year
Rupert Soames (pictured), chief executive of Serco, which operates the Caledonian Sleeper and part controls Merseyrail, could earn £4.2 million if he hits his performance targets
Boss of Go-Ahead, Christian Schreyer, could earn up to £1.37 million this year. Go-Ahead has a 65 per cent stake in Southern, Great Northern, Thameslink and Gatwick Express.
Rupert Soames, chief executive of Serco, which operates the Caledonian Sleeper and part controls Merseyrail, could earn £4.2 million if he hits his performance targets.
Dr Jacob Kam Chak-pui is chief executive of Hong-Kong based MTR Corporation, which runs London’s brand new Elizabeth Line and has a 30 per cent stake in South Western Railway.
His pay package was nearly £1.3million last year including bonuses and he is in line for similar this year, including a basic salary of nearly £900,000.
Meanwhile, the board of Deutsche Bahn, which ultimately owns operators CrossCountry, Chiltern Railways and the London Overground, got £4.1million last year, up from £3.8million in 2020. They are in line for similar this year.
Tory MP Greg Smith, who sits on the Commons transport committee, said: ‘I’ve got no objection to big pay packages…but what we’re seeing on the railways today is anything but first-class as my constituents struggle to even get a seat on rush hour trains.’
A spokesman for the Rail Delivery Group, which represents all operators, said: ‘We need to pay salaries that mean we can attract the best talent.’
A spokesman for FirstGroup said: ‘In line with our shareholder-approved policy, the Remuneration Committee fully considered the performance of the whole Group over the year alongside the experience of shareholders and our wider stakeholders.’
A Go-Ahead spokesman said: ‘Executive pay is aligned to demanding targets, and the company’s remuneration committee will take into account factors such as operational performance and the pandemic in determining a final amount.’
An MTR spokesman said: ‘It is the company’s policy that remuneration is appropriate and aligns with the company’s goals, objectives and performance.’
A Serco spokesman said: ‘Serco is a not just a rail company and our rail business accounts for less than 5% of our revenues.
‘Since 2017 Serco’s revenues have grown 50% and profits by 234%, and we have taken £20bn of orders against £17bn of sales, in a market growing at around 3% per year.’
A spokesman for the Rail Delivery Group, which represents all operators, said: ‘These people are running big and complex companies which operate across the globe, creating tens of thousands of British jobs and boosting the economy.
‘Like any industry, we need to pay salaries that mean we can attract the best talent.’