2 months ago
German minister wants Deutsche Bahn bonuses tied to goals
Germany has a very big train company called Deutsche Bahn.
Many people are angry because the trains are often late.
The managers still get big bonuses even when the trains do not run on time.
A new government leader named Steffen Bilger has an idea to fix this.
He wants to pay managers smaller bonuses when the trains are late.
The government sets goals for the train company to meet.
Right now, only about 6 out of 10 long-distance trains arrive on time.
By 2029, the goal is to have 7 out of 10 arrive on time.
Bilger says the current numbers are completely inadequate.
The government will spend a lot of money to improve the railway, but reaching perfect punctuality will not happen anytime soon.
Germany's new transport minister Steffen Bilger wants to tie Deutsche Bahn executive bonuses to meeting government targets.
Bilger told Bild am Sonntag that bonus payments would be affected if government-set targets are not met.
The plan comes amid mounting criticism over chronic delays and management pay at the national rail operator.
The government is preparing to invest billions of euros into overhauling the rail network.
Under the current agreement, long-distance trains must reach 70% punctuality by 2029, up from about 60% in the first half of this year.
- Who
- Germany's new transport minister, Steffen Bilger, and Deutsche Bahn executives.
- What
- A proposal to tie Deutsche Bahn executive bonus payments directly to meeting government-set targets.
- Where
- Germany, announced from Berlin.
- When
- Announced in an interview published on Sunday, August 9; Bilger was appointed late last month.
- Why
- To address mounting criticism over chronic delays and management pay at the national rail operator.
Structural causes view
Management accountability view
Root cause of rail problems
Structural causes view
Transport experts say Deutsche Bahn's problems stem from decades of underinvestment in infrastructure despite rising rail use, and from its dual status as a profit-seeking joint-stock company providing a public service.
Management accountability view
Minister Bilger says the figures are 'completely inadequate' and wants executive bonuses more directly tied to meeting government targets to drive better performance.
Punctuality expectations
Structural causes view
The current agreement commits long-distance trains to reach 70% punctuality by 2029, up from about 60% in the first half of this year.
Management accountability view
Bilger acknowledges there won't be 100% punctuality in the foreseeable future, saying he does not think that level exists in other European countries either.
Key facts
- Minister
- Steffen Bilger
- Rail operator
- Deutsche Bahn
- Current long-distance punctuality
- About 60% in the first half of the year
- 2029 punctuality target
- 70% for long-distance trains
- Planned investment
- Billions of euros into overhauling the network
- Interview outlet
- Bild am Sonntag
- Report date
- August 9, via Reuters
Quotes
Steffen Bilger
German Transport Minister
“It will have a concrete impact on bonus payments of Deutsche Bahn managers if targets set by the government are not met.”
theprint.in
“The figures so far are completely inadequate.”
theprint.in
Sources
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