Lothian Buses boss set for six-figure salary and five-figure bonus amid plummeting income

The appointment of the interim boss of Lothian Buses with a salary and potential bonus which could be worth nearly £200,000 despite plummeting passenger numbers and income due to the coronavirus crisis is set to be approved by councillors.

Nigel Serafini, who replaced the controversial former managing director of the council-owned bus company Richard Hall when he resigned in February, is set to receive a paycheck of £150,000 with a potential bonus of up to £45,000, meaning his total salary could hit £195,000.

His salary is less than his predecessor, widely considered the best-paid public official in Scotland, and is dependent on councillors approving the move of the Lothian board at a meeting of Edinburgh City Council’s policy and sustainability meeting this week.

An extension to the terms of non-executive directors Steve Cassidy, Susan Deacon, Tony Rose, Mark Yexley and chairman of Lothian buses Jim McFarlane for an extra year are also set to be approved.

The news comes as many drivers at the company remain on furlough as the bus operator grapples with plummeting passenger numbers and income.

In the report set to be approved by councillors, council officials state: “The current COVID 19 pandemic is having a very significant impact on Lothian Buses’ operations and financial position.

“The individual and collective experience of the above named Directors is considered by the company to be an essential aspect of the support being provided to its executive team as they manage their response to the pandemic.”

Opposition councillors called for Mr Serafini to make a public statement that he would turn down any bonus offered.

Liberal Democrat transport spokesman, Cllr Kevin Lang, questioned the need to have the bonus act as a “dangling carrot”.

He said: “Lothian Buses is facing huge uncertainly and the biggest financial crisis in its history. With an already generous salary, does the new managing director really need the dangling carrot of even more money to do a good job?

“Everyone at Lothian Buses should be motivated by keeping the city moving, protecting services and supporting front-line staff. The new managing director can set an early example and say he’ll turn down any bonus if he’s offered it.”

Conservative transport spokeman, Cllr Susan Webber, called for the decision to be reversed.

She said: “With many private sector organisations taking the decision to not pay dividends or bonuses during this crisis, I would have thought that, given the dire state of Lothian Buses at the moment, that they too would look to set an example, particularly around the award of bonuses.

“Many, drivers, and employees of Lothian Buses face an uncertain future right now. I would question the appropriateness of this payment. I for one, would be looking for this decision to be reversed.”

A spokesman for Lothian Buses said: "Lothian is the UK’s largest municipal bus operator and as a critical element of the City's infrastructure will play a vital role in the economic recovery of Edinburgh and the Lothians as we move through Scottish Governments phased route map through managing COVID-19.

"Towards the end of February this year, at the request of the Board, Nigel Serafini Lothian’s Commercial Director took on the additional responsibilities of the role of interim Managing Director and as yet has received no additional remuneration.

“All Director remuneration is benchmarked by a leading, independent HR consultancy and is competitive with comparable commercial organisations, with any bonus payable directly linked to business performance and the achievement of related personal objectives.

“Remuneration is also subject to Board scrutiny and the existing executive team all chose to forgo the recommended performance related pay awards for 2019/2020.

"Over the last few weeks Lothian's senior leadership team have continued to focus on ensuring we can deliver our Critical Services Network for those who still require essential travel, whilst also maintaining the wellbeing of over 2500 colleagues.

“Like many other commercial organisations Lothian had to take the difficult decision to furlough some colleagues under the Coronavirus Job Retention Scheme.

“As the situation develops and we monitor demand for our Critical Service Network, our resource needs remain fluid with an increase in colleague numbers required likely in the weeks ahead.

"Lothian have made no cuts across the business to date, however given the volatile nature of the current operating climate we may have to consider all measures available to us to safeguard the future of our business."