Chief executive Ian Coucher will get more than £150,000 in incentive payments for the performance of his company over the last three years and directors Peter Henderson and Ron Henderson will each get more than £300,000.

The Office of Rail Regulation said it was "surprised and disappointed" at the decision to award large bonuses.

The bonuses were defended by the firm in its annual report (see main stony above) which said that it's successes "should not be overshadowed" by its failings.

Network Rail has said that Peter Henderson will receive a £217,000 annual bonus and £112,000 as part of its incentive plan and former financial director Ron Henderson will receive an annual bonus of £207,000 plus £112,000 under the three-year plan.

Bill Emery, Office of Rail Regulation chief executive said “The committee has provided details of its reasons, but we don't find them compelling, and nor do we believe the decision will gain widespread stakeholder support”

Iain Coucher recently turned down a separate incentive payment, which would have rewarded his performance on an annual basis. His current bonus is based on the company's performance over the last three years.

Last month the Office of Rail Regulation warned the company over its record on the West Coast main line, which has been plagued by delays and said the line's performance in recent months had been "volatile, and the problems are increasing".

The problems came despite a £9bn upgrade project, which was completed last December but more than one fifth of trains on the London-Glasgow line ran late last year.

Network Rail has also recently seen its annual profit fall and its debt level increase.

Pre-tax profit fell to £1.52bn in the period to 31 March, from £1.59bn in the same period last year.

The company's net debt also rose to £22.3bn from £19.7bn and it also failed to meet efficiency savings targets set by the Office of Rail egulation.

Bill Emery chief executive of the Office of Rail Regulation said: "We are surprised and disappointed that Network Rail's non-executive directors decided not to exercise their discretion to reduce significantly the bonuses for its senior executives, reflecting the mixed performance of the company during the last year and the economic climate that is facing many of its customers and suppliers.

"The committee has provided details of its reasons, but we don't find them compelling, and nor do we believe the decision will gain widespread stakeholder support."

A Department for Transport spokesman said: "Network Rail bonuses are a matter for them but, as Andrew Adonis made clear earlier this year, we welcome Iain Coucher's decision to give up his annual bonus which reflects the public's mood on bonuses."

Network Rail's annual report defended the bonuses, saying its remuneration committee had reflected on the disruption to passengers on the West Coast line.

But it said it had noted that the scale of the delivery of the £9bn modernisation project "should not be overshadowed completely".

The committee also said train and freight company satisfaction with Network Rail had not shown the same progress as passenger satisfaction.

Customer and passenger satisfaction would be taken into account when considering the 2009/10 management incentive plan, it added.

NETWORK RAIL BONUSES

• Iain Coucher Chief Executive - Annual incentive: nil. Three year incentive plan: £150,255
• Robin Gisby Operations Director - Annual: £81,345. Three year: £57,887
• Peter Henderson Infrastructure Director - Annual: £216,920. Three year: £112,107
• Ron Henderson now retired - Annual: £206,567. Three year: £112,107
• Simon Kirkby Director of Infrastructure Investment -Annual: £61,345. Three year: £55,752
• Paul Plummer Director of Planning and Regulation - Annual: £76,415. Three year: £65,151