Three companies that lease trains to British railways distributed substantial sums to shareholders and executives in the most recent financial period, according to newly published accounts. Porterbrook Holdings paid £80m in dividends and increased chief executive Mary Grant’s compensation to £1.44m. Eversholt Rail distributed £200m in dividends before its sale and paid departing CEO Mary Kenny £1.33m. Angel Trains allocated £111m in dividends to shareholders while providing its chief executive, Malcolm Brown, with £700,000 in compensation.
The executive compensation packages significantly exceed salaries provided to senior leaders at other major railway organizations. Rail industry unions have responded to the financial disclosures by calling for immediate government action. The RMT union highlighted that the three largest train leasing companies have paid out £2.4bn in dividends over the preceding decade. Union leadership has proposed introducing a levy on the companies’ profits, suggesting the revenue could fund fare reductions for passengers during an ongoing cost of living crisis.
The government has been developing a new rolling stock strategy that includes potential public ownership of trains through the Great British Railways entity as an alternative to leasing from private operators. A transport official stated the government would pursue direct ownership if such an approach would deliver superior outcomes for taxpayers and passengers. According to rail regulatory data, train operators paid more than £4bn to lease vehicles from these companies last year, with the leasing firms maintaining a net profit margin of 18.5%.
The companies have defended their operations and financial distributions. Industry representatives emphasized their substantial capital investments in new rolling stock and fleet improvements, noting these expenditures depend on shareholder funding. They indicated commitment to continued investment in rail infrastructure. One company highlighted its tax contributions to the United Kingdom over a recent three-year period.
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