Network Rail completes public member selection

Network Rail has no shareholders and will pay no dividends. Instead, it has Members and will reinvest any operating surplus in the rail network. The principal role of the Public Members, and the 31 Industry Members now appointed, is to hold the Board accountable for its performance and contribute to the successful delivery of Network Rail’s plans for safe, reliable and efficient rail infrastructure.

Public Members, who responded to a national advertising campaign, were chosen according to their skills and experience. Industry Members are representatives of rail licence holders, the companies which operate Britain’s rail network.

Public Members 51 of the Public Members announced today are private individuals. 33 have been drawn from a wide variety of stakeholder organisations including passenger authorities, regional transport executives, disabled access groups and business representatives. All have demonstrated a commitment to making a constructive contribution to Network Rail.

The successful private individuals represent a diverse range of backgrounds including; rail service users, community service, finance, rail employees, industry and public safety. The youngest is aged 20, the most senior 75.

A considerable number of commercial organisations and customers submitted applications to become Public Members. There was also strong interest from representative organisations and associations, which has been reflected in the Membership Selection Panel’s final recommendations. 10 of the 33 organisations represented are from the public sector.

There was an unusually high response rate (48%) of completed application forms received from prospective Public Members out of the 2500 membership packs which were requested. Successful candidates have been selected from Cornwall to the Highlands and every region in between. One notable feature of the process was the particularly high quality of applications received from women, who make up 23.5% of Public Members.

An overall majority of Network Rail’s 115 strong Membership body is drawn from the private sector. Public Members will serve an initial term of 3 years. Membership is non-transferable and cannot be sold.

Network Rail is a company limited by guarantee, run along commercial lines but with no shareholders. Its Board of Directors has sole responsibility for the running and management of the Company and for strategy, financing and decision making. The members’ role is to hold the Board accountable for that management. Members will review the performance of Network Rail against its targets and ensure high levels of corporate governance. The day-to-day operation and management of the business will be the responsibility of the Board.

Independent Membership Selection Panel

The independent Membership Selection Panel comprises Sir Malcolm Field (ex Chief Executive of WH Smith Plc and Chairman of the Civil Aviation Authority from 1996 to 2001), as Chairman, Sir Edward Osmotherly (previously the Local Government Ombudsman and chairman of the Commission for Local Administration in England) and Sir Robert Smith, (a non-executive director of Network Rail and Chairman of the Weir Group plc and former Vice Chairman of Deutsche Asset Management).

Sir Malcolm Field, Chairman of the Membership Selection Panel, says: “We have been greatly impressed by the quality and experience of the candidates who applied to become Public Members of Network Rail. The Public Members selected have a key role to play in holding the Board to account and ensuring the delivery of high standards of corporate governance.”

Ian McAllister, Chairman of Network Rail, says; “I am delighted to extend a warm welcome to our new Members. I am sure that they will work with us to help deliver the high quality rail infrastructure the travelling public has a right to expect.”