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Boris Johnson's right-hand man in charge of London's buses, taxis and the Congestion Charge should increase his pay fivefold after quitting for the private sector.
David Brown, managing director of surface transport for Transport for London, was today named chief executive of bus and train firm
Go-Ahead.
Brown, who earned £271,000 last year at TfL, can expect to enjoy an annual package worth as much as £1.4 million.
The TfL man replaces long-serving Go-Ahead boss Keith Ludeman, who steps down next July after five years.
Go-Ahead said it was too early to say how much Brown would earn.
Last year, the chief executive earned a basic salary of £578,000, a cash bonus worth up to 100% of salary and a further long-term incentive scheme worth up to 150% of salary.
Brown used to work at Go-Ahead until 2006. Ludeman, who first recruited him in 1998, said: “He knows London bus operations inside out.”
Shares in Go-Ahead rose 3.6% to 1319p as it said it is on track to hit City profit forecasts.
Train operations did better than expected in the last four months.
Revenues rose 6% on its Southern franchise, 10% on Southeastern and 7% on London Midland.
Ludeman said people may be taking more trains because the economy is recovering and petrol prices are high at the moment.
In the regulated London bus market, mileage for the quarter nudged up 1%. But revenues fell 7% after TfL pushed through new contracts with tougher targets — introduced by Brown.
In the deregulated bus market, volume was up 3% and revenue rose 4%. Affluent markets such as Oxford were particularly strong.
Ludeman played down fears about Government austerity cuts, saying: “We can manage any impact on our results in following years through a combination of further cost savings and recovery through fares.”
He said Go-Ahead has time to prepare for the cut in the rebate on bus fuel duty, which will fall from 80% to 60% by 2015. Axing the rebate would have cost Go-Ahead £25 million.
Reader views (2)
Talking of Boris Johnson - whatever has happened to him?
- sceptic, London, 26/10/2010 12:09
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Brown, who earned £271,000 last year at TfL, can expect to enjoy an annual package worth as much as £1.4 million,
Last year, the chief executive earned a basic salary of £578,000, a cash bonus worth up to 100% of salary and a further long-term incentive scheme worth up to 150% of salary.WE ARE ALL IN THIS TOGETHER!
- Shelia Beckton, Streatham, 26/10/2010 11:53
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