Rail Bosses Awarded Significant Bonuses and Pay Rises as Rail Disruption Looms

Rail executives have received substantial bonuses and pay increases, raising concerns as passengers face further disruption to train services. Private rail companies awarded bonuses of up to £1 million last year, despite failing to comply with new legislation aimed at minimizing rail disruptions. Of note is Arriva, a subsidiary of Deutsche Bahn, which operates Chiltern, CrossCountry, Grand Central, and London Overground, raising the salary and benefits of its highest-paid executive by 61% to £1,086,342. Meanwhile, Abellio UK’s chief executive enjoyed a 35% pay rise last year.

The audit conducted by the Daily Mail also reveals that FirstGroup’s top executives, Graham Sutherland and Ryan Mangold, shared £1.3 million in bonuses. Similarly, Go-Ahead‘s former chief executive, Christian Schreyer, received a £540,000 bonus in 2022. Despite these significant rewards, none of the 18 operators affected by the approaching nine-day rail strikes are implementing the government’s minimum service level requirement, which mandates at least 40% of normal services during strikes.

As members of the drivers’ union Aslef prepare for rolling walkouts and a nine-day overtime ban from Monday, travelers should anticipate disruptions to their journeys this week. Widespread changes to services across the network are expected, with some train operators canceling all services. FirstGroup, which owns Great Western Railway, Lumo, Hull Trains, and has a 70% stake in South Western Railway and Avanti West Coast, awarded its top executives £1.3 million in bonuses despite Avanti’s poor performance and being stripped of the TransPennine Express contract shortly after. The Department for Transport spokesman placed blame on Aslef’s leadership for the expected disruptions.

The Rail Delivery Group, representing operators, acknowledged that minimum service level legislation is a valuable tool for managing strike disruptions but emphasized its limitations. Operators’ primary priority is to offer reliable and high-quality services to passengers. FirstGroup defended the 2022/23 bonuses, attributing them to strong financial performance. Arriva clarified that executive pay is connected to operations throughout Europe, while Go-Ahead justified executive pay by citing the scope and scale of their business.