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<p>In the latter half of Control Period 4 (2009-14) it became clear that Network Rail
faced serious Executive retention risks which threatened leadership continuity. Accordingly,
at the company’s 2012 Annual General Meeting, Network Rail’s members agreed one-off
performance related retention payments for three Executive Directors if they remained
in post for the entirety of the Control Period. These retention payments were implemented
when Network Rail was a private sector company limited by guarantee.</p><p> </p><p>
</p><p> </p><p>On 1 September Network Rail was reclassified to the public sector.
As an arm’s-length public sector body, it must use public money proportionately and
with probity and ensure that reward and remuneration do not go beyond what is needed
to ensure sustained high performance. As part of new governance arrangements, Executive
Director remuneration will be set by Network Rail’s Remuneration Committee but must
be approved by the Secretary of State and the Chief Secretary to HM Treasury. Under
the company’s remuneration policy for Control Period 5 (2014-19), no further retention
payments can be awarded to serving Directors.</p><p> </p><p> </p><p> </p><p> </p><p>
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