Yet another cancellation by Network Rail: Chief execs bonus

Salary bonus cancelledFinally, a cancellation by Network Rail we can all be happy about. Network Rail chief exec Sir David Higgins has turned down his £340,000 bonus after being put into the spotlight of the public, similar to vilified banker Stephen Hester last week.

Sir David Higgins earns a basic salary of £560,000, so it might be fair to say he’ll still be able to afford a season ticket. After running his basic wage through the salary calculator, the following figures are revealed:

  Year Month Week Day Hour
Gross income £560,000.00 £46,666.67 £10,769.23 £2,153.85 £287.18
Personal allowance £0.00 £0.00 £0.00 £0.00 £0.00
Taxable income £560,000.00 £46,666.67 £10,769.23 £2,153.85 £287.18
Income tax          
Tax £258,000.00 £21,500.00 £4,961.54 £992.31 £132.31
National Insurance £14,581.04 £1,215.09 £280.40 £56.08 £7.48
Net income £287,418.96 £23,951.58 £5,527.29 £1,105.46 £147.39

In fact, his salary represents 458 x Manchester to London 1 month season tickets. I don’t know if that bit of trivia highlights more that his salary is so high, or that UK rail fare prices are extortionate.

An interesting question is why he feels he has to turn down this bonus. If Sir David Higgins can see why, then why can’t the people who give them the bonus in the first place also see it?

With another bonus waived, who from the 1 percent will be next? Will the premiership footballers ever get some home truths about their salary entitlements? Who do you think will be under scrutiny next?

Stephen Hester’s salary broken down

BankerFollowing the recent controversy of RBS CEO Stephen Hester’s bonus, and his gracious decision to waive it, we thought we’d take a look at his basic salary to see just how much he will struggle without it. Using the salary calculator, the figures reveal exactly how the fat cat’s salary translates into an hourly, daily, weekly, monthly and yearly wage. It also shows how much the government will be able to claw back through income tax and national insurance.

  Year Month Week Day Hour
Gross income £1,200,000.00 £100,000.00 £23,076.92 £4,615.38 £615.38
Personal allowance £0.00 £0.00 £0.00 £0.00 £0.00
Taxable income £1,200,000.00 £100,000.00 £23,076.92 £4,615.38 £615.38
Income tax          
Tax £578,000.00 £48,166.67 £11,115.38 £2,223.08 £296.41
National Insurance £27,381.04 £2,281.75 £526.56 £105.31 £14.04
Net income £594,618.96 £49,551.58 £11,434.98 £2,287.00 £304.93

Although the figures won’t be entirely accurate (as they are based on a 37.5 hour working week, and you’d hope Stephen Hester would be expected to work more than this), it gives a clear indication that he won’t be visiting wonga.com for a pay day loan anytime soon.

He deserves it

Whilst to the average worker, a £1 million bonus on top of a £1.2 million salary may seem beyond excessive (compounded by the figures revealed above), it has to be put into context. Stephen Hester is in charge of reviving an organsation comprised of 141,000 employees. Although 84 percent of RBS is now owned by the taxpayer, the real problem lies with the fact when it was bailed out each share was worth 50p. 2011 saw share values fall to a staggering 19p, which in turn represents a loss of £26 billion to the UK government. He now needs to turn around the fortunes of the bank in order for the government to get their money back, or even for them to make a profit on the investment. When you see the amount of responsibility he has on his shoulders, you may begin to see just why he “deserves it” as other bankers put it.

Ask yourself, would you prefer him to receive a salary of £2 million, or a salary of £1m and a performance based bonus of £1m?

How to calculate a salary from your hourly wage

Part time, temp jobs and contract work often come with an hourly rate, as opposed to an annual wage rate. This can make it difficult to put the pay into perspective, as an hourly rate can often seem more attractive than what is actually before being converted into an annual salary.

The wage to salary calculator solves this problem. By entering your gross wage per hour, it will then calculate your salary into hourly, daily, weekly, monthly and yearly wage based on an average working week of 37.5 hours. It even goes a step further by breaking down the wage into gross and net pay (after income tax, national insurance and other deduction/allowances).

If you have ideas on how to improve the salary calculator please leave a comment below, your feedback is appreciated.