UK: Network Rail in talks over major revamp
Posted: 17 Aug 2009, 06:29
Network Rail in talks over major revamp
From The Sunday Times
August 16, 2009
Dominic O’Connell
Proposals for a radical shake-up of Network Rail are to be thrashed out at meetings between Rick Haythornthwaite, the chairman, and its members over two days of meetings next month.
The talks could lead to an extraordinary meeting to change the not-for-profit group’s articles of association later in the year.
Network Rail runs the UK’s rail network and its largest train stations. Its unique corporate governance structure — a company limited by guarantee, it has no shareholders but is ruled by 130 members chosen from the general public and rail groups — has been under fire for providing little oversight or control of its board and executives.
Earlier this year the members set up a 12-strong group to review the structure. It recommended the number of members should be cut to 30, that the body should have a chairman and a vice-chairman, independent of the Network Rail board, and that members should be consulted on the business plan, including the appointment of new directors and bonuses.
Haythornthwaite, who took over as chairman in July, will meet members to discuss the changes early next month.
Members spoken to by The Sunday Times said it was not certain the shake-up would go ahead. “It is very difficult to get a consensus around what should happen, particularly over the reduction in the number of members,†one said.
The Conservatives have said that, if elected, they will install a new supervisory board and enhance the role of the independent rail regulator by giving him the power to veto bonus payments to the company’s executives.
From The Sunday Times
August 16, 2009
Dominic O’Connell
Proposals for a radical shake-up of Network Rail are to be thrashed out at meetings between Rick Haythornthwaite, the chairman, and its members over two days of meetings next month.
The talks could lead to an extraordinary meeting to change the not-for-profit group’s articles of association later in the year.
Network Rail runs the UK’s rail network and its largest train stations. Its unique corporate governance structure — a company limited by guarantee, it has no shareholders but is ruled by 130 members chosen from the general public and rail groups — has been under fire for providing little oversight or control of its board and executives.
Earlier this year the members set up a 12-strong group to review the structure. It recommended the number of members should be cut to 30, that the body should have a chairman and a vice-chairman, independent of the Network Rail board, and that members should be consulted on the business plan, including the appointment of new directors and bonuses.
Haythornthwaite, who took over as chairman in July, will meet members to discuss the changes early next month.
Members spoken to by The Sunday Times said it was not certain the shake-up would go ahead. “It is very difficult to get a consensus around what should happen, particularly over the reduction in the number of members,†one said.
The Conservatives have said that, if elected, they will install a new supervisory board and enhance the role of the independent rail regulator by giving him the power to veto bonus payments to the company’s executives.