Transport for London’s latest data on staff pay has been published, and a pandemic hangover has given some a bumper pay packet.
More than 1,300 members of its staff earned salaries of more than a hundred grand, but all is not necessarily what it seems.
The data published today, for the year ending 31 March, shows that 1,319 staff members, out of a total of 17,432, received a salary of more than £100,00.
This is an increase from the previous year when TfL had 16,422 staff members. Just 766 staff members earned over £100,000, including bonuses, representing a 72 per cent rise, as first reported by the Standard.
This comes after Transport for London (TfL) hit an operating surplus of £138m in the last financial year, but investment in its network dipped amid a dearth in government funding.
In its financial report covering March 2023 to April 2024, TfL said capital enhancement had fallen from £1.36bn to £1.25bn year-on-year over what marked the first period it has operated without Covid-era grant funding from the government.
Despite hitting an operating surplus, TfL argues it needs the extra money to fund a series of critical network upgrades.
A breakdown of the highest earners
Andy Lord, Commissioner for TfL, received £424,416 for 2023/4, while total remuneration, excluding pension contributions, was more than half a million quid. His salary was topped up by £99,204 in performance-related pay.
However, the pandemic impacted his pay when he declined to take a performance award for 2021/22. His pay solely relates to 2022/23, during which time the Elizabeth line was launched.
It also confirmed that Lord’s performance award for 2022/23 was based on his Chief Operating Officer salary before he became commissioner in June 2023.
Speaking of the Elizabeth Line, Howard Smith, its director, received £254,591, including £53,267 in bonuses. It is the capital’s busiest and favourite route though.
Glynn Barton, Chief Operating Officer, made just over £250,000, in addition to £84,000 for performance-linked pay, while Patrick Doig, Group Finance Director, made £267,254, in addition to 70,528.
Sadiq Khan’s pay is not tied to TfL.
So, why was TfL pay so high?
Transport for London has said the reason there was a 70 per cent jump in staff getting more than £100,000, was due to the pandemic, essentially.
When Covid hit, Londoners were not allowed to use the transport network as much, meaning it made less money – and that meant big losses.
As it fizzled out, TfL has tried to make up for those losses, including by withholding bonuses of performance-linked pay.
TfL said the reason behind the bumper pay, was two years of bonuses being paid out this year, after Covid. The network said it had committed not to pay out that pay until it was once again financially sustainable.
Kay Carberry CBE, Chair of TfL’s Remuneration Committee, said: “TfL has made great progress on recovering its finances that were decimated by the pandemic, and met its target this year of being financially sustainable in terms of its day-to-day operations.
“People are at the core of everything TfL does, and this means setting a policy that is competitive on pay with TfL’s peers, while at the same time keeping a firm eye on salary levels to ensure they remain appropriate.”
A TfL spokesperson added that it “is a complex £9bn a year turnover organisation that is central to the success of London and the UK.
“The number of employees listed as earning more than £100,000 in 2023/24 cannot be meaningfully compared to 2022/23 because, as a result of delivering operational financial stability for the first time in TfL’s history, TfL was able to pay performance awards that had been paused the previous year.”
“This meant that 2023/24 saw the exceptional circumstance of awards for two consecutive years being paid in the same year for certain roles. Such a circumstance is highly unusual and is not predicted to reoccur.
“Other factors involved include a greater number of overtime payments due to vital works taking place on the network and pay revisions linked to inflation – which has run at significantly higher levels than usual.”
“In a highly competitive market, in which comparator companies pay their top executives significantly more than TfL, it is essential that we continue to attract and retain staff across all disciplines of the organisation.”
In its financial update posted last week, TfL said there had been an almost £300m increase in investment in major rolling stock and signalling projects on last year, with £90m put into DLR trains.
However, it added that short-term borrowing had increased to manage cash and liquidity issues. Some £245m of the government’s £250m funding package has been delivered, which has helped defer some borrowing into 2024/25.