Senior executives at Network Rail, the company set up to run the country's railways, could share bonuses totalling £2.7 million this year.

A confidential report prepared by the company's remuneration committee shows the top five directors at the group, whose basic salaries collectively total £1.7 million, could get a further £1.1 million in bonuses.

A further 23 senior executives, who collectively earn £3.25 million, would shares bonuses worth a total of £1.6 million.

The five top men at Network Rail would get bonuses worth the equivalent of 60 per cent of their salaries if certain performance targets were met, compared with just 50 per cent for executives of its predecessor Railtrack, the privatised firm which was put into administration by the Government in 2001.

It was reported the financial performance targets executives had to meet for their bonuses to be paid had been lowered.

The report comes just a fortnight after rail regulator Tom Winsor launched a strong attack on the structure of Network Rail, saying a lack of proper shareholder control over the business had led to an explosion in costs.

But a spokesman said bonuses and salaries for the coming year had not yet been finalised.

Any bonuses would be linked to performance targets and there would be no rewards for failure.

He said: "This is a new management team brought in from the private sector to rescue a company in administration.

"The 2002/2003 bonus scheme ensured pay was directly linked to improvements in performance. The interests of executives and passengers are totally aligned.

"The business plan published recently outlined demanding targets for improvement, in particular efficiency and better maintenance of railway assets. Potential rewards will be linked to those targets."