Decisions on the remuneration and incentivisation of Network Rail's executive directors are a matter for the company's independent Remuneration Committee. Bonuses are determined against key performance indicator targets set by the independent Office of Regulation in accordance with condition 16 of Network Rail's network licence. The terms of Network Rail's Management Incentive Policy can be modified only with the consent of the Office of Rail Regulation.
As part of the Office of Rail Regulation's Periodic Review 2008 Final Determinations, changes were introduced on 1 April to Network Rail's network licence to strengthen the company's accountability. These require Network Rail's Remuneration Committee to be more transparent in its executive bonus decision-making process; to publish an annual account of how the bonus awards have been calculated; and to explain how it has taken into account input from the Office of Rail Regulation.