June 27, 2012
Transport bosses average £1 million pay
The bosses of the ‘big five’ private transport operators have pocketed an average £1 million each in pay, bagging an aggregate pay rise worth a shade shy of 20 per cent, according to their most recent company accounts, a study by transport union RMT reveals today.
As bus and rail passengers face fares hikes of a minimum of six per cent and service cuts, the news that transport bosses have followed the city trend to give themselves bumper pay packages will be greeted with anger and dismay, the union says.
Deepest in the trough was National Express boss Ray O’Toole, whose 110 per cent pay hike took him to £1.3 million.
Not far behind was Brian Souter, the Stagecoach chief whose £1.2 million pay last year was 35 per cent more than the year before – and that’s on top of his £51 million share of the £340 million dividend the company paid out, days after increasing some rail fares by as much as 13 per cent.
Arriva Group boss David Martin saw his pay increase by just under eight per cent to £803,000. Go-Ahead Group chief Keith Ludeman suffered a pay cut – but still walked away with £1.2 million, while Tim O’Toole of First Group had to make do with only £579,000.
RMT general secretary Bob Crow said:
“These figures show once more that it is one rule for working people and another for their bosses.
“It is an absolute disgrace for transport bosses to be shovelling these vast sums into their own bank accounts when passengers are being fleeced and rail and bus workers are being told to tighten their belts, work harder and face losing tens of thousands of jobs.
“RMT has said from the start that transport privatisation boils down to a crude device for converting public subsidy into private profit, but these telephone-number salaries are an insult to passengers and transport workers alike.”
Further information: Derek Kotz, 07939 595 092
Notes to editors: Figures taken from most recent company accounts:
Company Highest-paid director
National Express Group Ray O'Toole £1.3 million (31 December 2010)
(£644,000 in Dec 2009 +110.5%)
Rail franchises: c2c
Stagecoach Group Brian Souter £1.2 million (30 April 2011)
(£897,000 in Apr 2010 +35%)
Rail franchises: South West Trains, East Midlands Trains
Arriva Group David Martin £803,000 (31 Dec 2010)
(£743,635 Dec 2009 +7.9%)
Rail franchises: Arriva Trains Wales, Cross Country Trains
Go-Ahead Group Keith Ludeman £1.1 million (2 July 2011)
(£1,240,000 Jul 2010 -6.6%)
Rail franchises: Southeastern, Southern, London Midland
First Group Tim O’Toole £579,000 (31 Mar 2011)
(£643,000 Mar 2010 - 9.9%)
Rail franchises: First Capital Connect, First Great Western, First Hull Trains, Transpennine Express, ScotRail