The chief executives of three major train leasing companies in the UK collectively received £3.5 million in compensation last year, while distributing nearly £400 million to shareholders in dividends. This has led to criticism from rail unions, who claim that these rolling stock companies (Roscos) are prioritizing profits over the needs of passengers.
This information was revealed in financial reports released this week, coinciding with the government’s announcement of a new strategy for rolling stock in the UK rail network. The administration is contemplating the possibility of directly owning trains through the public agency Great British Railways, rather than relying on private leases.
The reported figures indicate that Porterbrook Holdings disbursed £80 million in dividends, simultaneously raising the salary of its CEO, Mary Grant, by over 10% to £1.44 million. Eversholt Rail distributed £200 million in dividends in 2025 prior to its acquisition by Beacon Rail from CK Hutchison, with outgoing CEO Mary Kenny earning £1.33 million. Angel Trains paid out £111 million in dividends, with its CEO, Malcolm Brown, receiving a comparatively modest salary of £700,000.
The compensation packages for these executives are significantly higher than the salaries of top officials at Network Rail and HS2. In response, the RMT union has called for the implementation of a levy on Roscos, emphasizing the substantial dividend payouts and executive salaries. Over the past decade, the three largest Roscos have distributed a total of £2.4 billion in dividends.
Eddie Dempsey, the general secretary of the RMT, remarked, “While the government’s intention to look into public ownership of rolling stock for future trains is encouraging, immediate action is necessary amidst the ongoing cost of living crisis. We urge the government to use this month’s budget to establish a ‘cost of travel’ levy on profits to facilitate a 3.4% reduction in fares instead of allowing profits to accumulate.”
Heidi Alexander addressed the Labour conference on Monday, stating that if owning trains through Great British Railways would serve the interests of taxpayers and passengers, it should be pursued.
According to the rail regulator, train operators spent over £4 billion last year leasing trains from Roscos, which reported a net profit margin of 18.5%. A representative from Porterbrook noted that the company has invested over £1 billion in new trains, fleet enhancements, traction innovations, and rail infrastructure since 2020 and is seeking to invest an additional £1 billion in the coming years. They also emphasized that the group is a UK tax resident and has contributed £82 million in taxes over the past three years, stating, “It is due to the funding provided by our shareholders that we can make significant investments in the railway.”
Angel Trains, which is registered in Jersey but operates under UK tax regulations, expressed that decisions regarding future fleets should focus on achieving the best results for passengers while also ensuring conditions that attract future investments in rail infrastructure. They look forward to collaborating constructively with the government and Great British Railways. Eversholt and its new owner, Beacon Rail, were also contacted for comments but did not respond.
