The Chief Executive of Network Rail, Iain Coucher, has stated he will forgo his annual bonus for 2008/09.

The Chief Executive of Network Rail, Iain Coucher, has decided to withdraw from the company’s annual bonus scheme, forgoing a potential bonus of more than £300,000.

The company’s bonus scheme is split into two parts – an annual bonus scheme and a longer-term element that replicates the company’s share options. Along with Coucher’s annual bonus in 2007/08 of around £300,000, he also received around £200,000 in other bonuses.

Coucher said of his decision to withdraw from the 2008/09 annual scheme: “In the last 12 months we met or exceeded almost all of the tough targets set for us by our independent regulator… Nonetheless I am mindful of current sentiment, so I have taken a personal decision to forgo any annual bonus this year. The success of our company and its hard-working people must have the opportunity to be seen and heard.

“Our people have secured this success and every one – from signal box to boardroom – will deserve any bonus which may be awarded to recognise this. Incentivising our people makes sure that the company is focused on what it needs to do. Our people have delivered what has been asked of them and more. I believe we must honour the deal to reward their collective success.”

Last year’s bonus was awarded to Coucher despite the company being fined £14 million for engineering works overrunning, which resulted in severe delays for passengers at Liverpool Street and Rugby stations.

However, Network Rail is proud of its relative success, citing passenger satisfaction at 83%; 91% of it trains arriving on time; and a reduction in running costs of £1 billion annually.