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Network Rail chief executive David Higgins has waived a proposed 拢340,000 bonus following growing prssure over excessive bonuses paid to senior executives.

In a statement Higgins said that all Network Rail directors had decided to pledge their bonus entitlements, reportedly worth 拢16m over three years, to a safety improvement fund for level crossings.

The rail network operator, one of the construction sector鈥檚 biggest clients, also said that it had postponed its annual general meeting (AGM)scheduled for Friday amidst the growing furore over executive pay.

The decision follows the announcement by transport secretary Justine Greening yesterday that she was planning to vote against the 拢340,000 bonus for Higgins at the AGM.

However, Greening stopped short of saying she would intervene to block Higgins鈥� bonus, which comes on top of a 拢560,000 basic salary and is part of a reported 拢20m bonus pool for senior Network Rail staff. Greening was only told of Network Rail鈥檚 decision to postpone the AGM this morning.

Higgins, formerly chief executive of the Olympic Delivery Authority, has come under increasing fire since the size of his proposed bonus was revealed last week, in the wake of the furore surrounding the bonus payment to the chief executive of the Royal Bank of Scotland.

Network Rail said in a statement: 鈥淭he board of Network Rail has decided to recommend to its members that this Friday鈥檚 meeting be adjourned. The board will take the opportunity to reflect further on how to incentivise performance in the company against the backdrop of the current context.鈥�

David Higgins said: 鈥淚 and my directors decided last week that we would forego any entitlement and instead allocate the money to the safety improvement fund for level crossings. I can confirm that remains our intention.鈥�

UK railway track operator Network Rail is incorporated as a 鈥渘ot for dividend鈥� private company in which the government is an influential shareholder through a unique 鈥渕ember鈥� governance structure.

Greening, speaking on the BBC鈥檚 Sunday Politics show, said: 鈥淚鈥檓 going to go to the meeting next Friday, I鈥檓 going to vote against them. The governance structure that the last government set up means I can go and vote against it. The problem we have got is that won鈥檛 actually change the result.鈥�

However, Maria Eagle, the shadow transport secretary, said: 鈥淕reening is wrong to say that she cannot block these bonuses 鈥� It is difficult to see why Network Rail would have felt able to propose this new bonus package without knowing if it had ministerial backing.鈥�