TfL bosses savaged over plans for £12m bonuses as service struggles to recover

Caroline Pidgeon criticises plans for reinstated TfL bonuses

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Caroline Pidgeon, Chair of London Assembly’s Transport Committee, has hit out at plans for £12m in bonuses for bosses at crisis-hit TfL, asking “how can anyone consider it appropriate to look at bonuses for senior staff at a time like this”. It came after a report claimed that TfL will end a freeze on bonus payments introduced as a result of the COVID-19 pandemic – in an attempt to keep hold of staff.

Ms Pidgeon told LBC: “It’s extraordinary. We saw this yesterday in the Evening Standard that the remuneration committee of Transport for London in their wisdom, have felt now is the time to start reinstating bonus payments for senior staff at Transport for London not to be paid until, I think, it’s 2023, when they hope to be financially independent of Government.

“How anyone can even consider it appropriate to look at bonuses for senior staff. 

“It’s beyond me and I just think it’s such a mistake. Such a mistake at this time.”

Host Nick Ferrari asked: “How will you and your colleagues attempt to hold them to account?”

Ms Pidgeon said: “Well, I think we’ll be starting through the budget process.

“I don’t chair that committee, the budget committee, we’ll be asking serious committee questions about that.

“And we’re picking it up through the transport committee as well.

 

“I just think at a time when you’re going into serious negotiations with Government about funding, you’re going to need to keep them running transport services to then on the other hand, be saying but we’re going to increase bonus payments to our top staff. 

“That cannot be right and this is going to really harm their negotiations with Government. 

“And I genuinely do not know what the chair of this committee was thinking of at this time, and what is going on at Transport for London that they thought this was even appropriate to be discussing.” 

The host asked: “In your view, does this trackback to the commission of TfL or the Mayor Sadiq Khan?”

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The caller said: “Well, it has to be both of them because both of them must have said that this was acceptable.”

In response to these comments, a TfL spokesperson said: “Following a suspension of senior management payment awards in the last financial year, the Remuneration Committee has agreed by Chair’s Action to implement a revised performance award arrangement for 2021/22 and 2022/23. 

“The proposed revised arrangement would reflect the need for TfL to ensure that we can sustain a fair reward package and retain senior talent at such a vital time while we are working to reach financial sustainability by April 2023.

“Any performance award earned would only be paid once TfL achieves financial sustainability and has been designed to ensure that it remains consistent with the terms of our funding agreement with Government. This decision was noted at the Remuneration Committee meeting on 10 November.” 

No bonuses will be paid out until TfL reaches financial sustainability in 2023/24.

The £12m figure is the overall total value if TfL achieves all goals, which includes reaching financial sustainability.

 

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