Network Rail has awarded massive bonuses to its directors despite announcing that they had failed to meet any targets for train punctuality whilst recording an annual loss of £1.1 billion.

The company, which is subsidised by the taxpayer, said it had given its five executive directors bonuses equivalent to 24 per cent of their basic salaries.

John Armitt, the chief executive, will receive a bonus of £112,320 on top of his £468,000 basic pay. His deputy, Iain Coucher, gets £99,840 in addition to his £416,000 wage.

Bob Crow, the RMT union boss who is threatening a strike over Network Rail's decision to close its final salary pension scheme to new staff, said: "If things are improving enough for directors to hand themselves six-figure bonuses, they are improving enough to deliver justice on pensions."