Seems a natural career move, no? No. David Higgins, currently chief executive at the Olympic Delivery Authority, will take over the role of February 1. He will succeed Iain Coucher, who steps down at the end of next month, after a three-year reign which has been punctuated with clashes with the unions, the rail regulator and train operators It has also been marked by controversy over the performance bonuses he and his fellow senior executives have received with Philip Hammond, the Transport Secretary, questioning whether the £2.25m paid to six top directors – including £641,349 to Mr Coucher himself – were appropriate.
Rick Haythornthwaite, Network Rail's chairman, admitted the appointment of Mr Higgins marked a change of culture at the company. "We needed someone who really understood how important it was to perform in a collaborative environment," he said. "Network Rail has not been known for its transparency and we have been seen as a monopoly that has been accountable to no one."
Mr Haythornthwaite said that Mr Coucher's reign had not always been easy, even though he had delivered improved performance for passengers, train operators and freight companies. "It was riddled with tensions and that has to be changed. It required a new cultural approach, we had to find a different way of doing business. "The biggest challenges are in relation to stakeholders to make sure we are all pointing in the same direction."
With the Government preparing spending cuts and Network Rail already under pressure to deliver greater efficiency, Mr Haythornthwaite said that Mr Higgins would be expected to "do more with far less money". Network Rail is also bracing itself for the results of a review into the company's efficiency by Sir Roy McNulty, which was ordered by the Coalition shortly after it took office.
In opposition the Tories were fiercely critical of Network Rail, which was created out of collapsed Railtrack. Even though Network Rail's safety and punctuality record was a vast improvement on its privatised predecessor, the company has been accused of failing to provide value for money for the taxpayer and the industry.
According to ministers and the Office of Rail Regulation, the infrastructure company has proved to be far less efficient than its continental counterparts. Currently a non-executive director at Network Rail, Mr Higgins worked with Mr Coucher's predecessor, John Armitt at the ODA. It is understood Mr Higgins, a civil engineer, will receive a lower salary than the £613,000 a year paid to Mr Coucher. However, it is thought to be an improvement on the measly salary of £394,999 per annum that he was paid for delivering the Olympics, making him the highest paid quango boss in the country.
