25.07.13
Network Rail chief executive to stand down
Sir David Higgins is to leave his post as chief executive of Network Rail, it has been reported.
He is expected to stand down after the start of the next control period in April 2014. The news has been described as a blow by government sources.
Network Rail has not commented so far.
Sir David joined the board of Network Rail as a non-executive director in April 2010 and took up the post of chief executive in 2011. He never intended to stay until 2019, but appears to be leaving earlier than planned. The advance notice will allow Network Rail to begin looking for a replacement in good time for his changeover next year.
He is highly regarded throughout the rail industry, and was previously successful as the head of the Olympic Delivery Authority. His leadership at Network Rail has increased accountability of the company, increased safety and cut down costs.
But the recent approval of a performance-related bonus scheme has been criticised at a time when Network Rail is failing to meet ORR targets on punctuality.
If Sir David does leave before April 2015, he would relinquish the right to a 100% bonus on top of his £577,000 annual salary.
Potential replacements include Robin Gisby, managing director of network operations, and Simon Kirby, managing director of infrastructure projects.
Manuel Cortes, leader of the TSSA rail union, said in a statement: “Sir David Higgins has done a good job in turning NR around after the difficulties experienced under the previous regime. He removed its bullying culture and placed a new emphasis on safety which had been sadly lacking. He was slowly restoring the company's reputation and we would have liked him to stay around to finish the job he had started. He will be a hard act to follow.”
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