Staff bonuses are to be paid by Transport for London for the first time since the pandemic — with top officials in line for big summer payouts, the Standard can reveal.
The decision to reintroduce the payments came after TfL hit a series of targets and achieved “financial sustainability” by March, and now expects to make a £79 million “profit” or “operating surplus” in the current financial year.
TfL’s new commissioner Andy Lord could receive up to 30 to 50 per cent of the salary he was on last year — it increased last week to £395,000 — while chief officers could receive up to 30 per cent, and directors 20 per cent.
“Eligible” staff — excluding people working for London Underground — are in line to receive two years of bonuses this summer.
Payments for the 2021/22 and 2022/23 financial years had been suspended during the pandemic, when TfL battled for financial survival.
But its remuneration committee on Monday granted permission for the bonuses to be paid after being told the 60 per cent performance “scorecard” target had been surpassed with a score of 64 per cent.
However, TfL fell short on several key measures, including passenger satisfaction and punctuality on the Elizabeth line. Only 53 per cent of Londoners believed TfL “cares about our customers”, below the 57 per cent target.
The decision to reinstate bonuses comes after the number of TfL staff earning more than £100,000 a year, once overtime and “golden goodbyes” were included, increased by 28 per cent to 766 in 2022/23, up from 597.
Mr Lord, who has declined to take a bonus for 2021/22, said: “It’s been a very challenging year. I think, overall, we have done very well to achieve the level that we have.”
His bonus for 2022/23 will be based in part on the salary he earned as chief operating officer, and in part on his nine months as interim commissioner, a role that carried an annual salary of £355,000.
The exact amount being awarded in bonuses will not be made public until TfL publishes its annual accounts next June. Bonuses are always paid at least a year in arrears.
Caroline Pidgeon, a Lib-Dem member of the London Assembly, said: “Given the ongoing problems on the Elizabeth Line and the fact TfL has still not met its customer satisfaction targets, it remains questionable whether it’s appropriate to reintroduce bonuses at this time.
“I would expect to see TfL hitting in excess of 70-80 per cent of its performance target indicators before bonuses are being paid out in the current climate.”
Nick Rogers, City Hall Conservatives transport spokesperson, said the “outrageous” bonuses were being funded partly through income from Ulez levies and fines.
Mr Rogers said: “While the Mayor pleads poverty and begs for bailouts, he is handing this money straight over to senior TfL staff who have missed several key performance indicators."
Fiona Brunskill, TfL’s chief people officer, said senior managers had endured a three-year pay freeze while the number of top posts had been reduced.
She said: “We believe that performance awards are critical as part of our remuneration package, to support TfL’s ability to attract and retain key talent.”
TfL’s income is being fuelled by a 5.9 per cent average hike in bus and Tube fares in March.
The Ulez expansion to the Greater London boundary on August 29 – pending a High Court challenge – is expected to generate £200m in income in its first year.
