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New rail chiefs face pay curb

Peter Rodgers
Sunday 05 March 1995 19:02 EST
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The Government plans to incorporate the conclusions of the Greenbury Committee on executive pay into the way railway privatisation is carried out, writes Peter Rodgers.

The move results from the row over top pay, which has made ministers determined to limit windfall gains by executives in the handful of remaining privatisations. One senior Treasury source said: "I am sure Greenbury will influence rail privatisation."

The rail sell-offs are set to include the first potentially lucrative management buyouts and franchise contracts for the train operating companies this year, which will be followed by the flotation of Railtrack next year.

As the power generator sale closes, ministers have been alarmed at the way the executive pay scandal threatens to overshadow the benefits of privatisation.

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