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Olympics chiefs came under attack today as it emerged they have paid themselves
average bonuses of £60,000 last year.
Eight directors of the Olympic Delivery Authority, the government agency building
the 2012 venues, received annual windfalls of between £38,000 and £210,000 on top
of six-figure salaries.
Details of executive pay in the ODA's 2008-09 accounts published today prompted calls
from MPs for the ODA to curb remuneration packages next year to reflect difficult
economic circumstances or risk increasing public disaffection with the 2012 project.
The ODA attempted to avert a row over pay levels as its chief executive David Higgins
agreed to defer his bonus. Mr Higgins receives a £594,000 package including a £210,000
annual bonus but he will not receive half of this until 2012 - provided the project
is finished on time and to budget.
Australian engineering expert Mr Higgins has been widely praised for keeping the £8
billion construction project on track and critics of the ODA's wages have targeted
their anger instead at the other senior management.
Beneath Mr Higgins, directors packages range from £225,000 for director of communications
Godric Smith to £318,000 for director of finance and corporate services Dennis Hone.
All but one of the ODA senior manage-menearned more than the prime minister's basic
salary of £195,000.
An ODA spokesman said: "The remuneration of the senior management team reflects both
the scale of the chal-lengand the strong progress we are making. Rates of pay are
consistent with industry market levels and incentives to hit milestones on the project
help reduce risk and ultimately reduce cost in the long-term."
Total bonuses for 2008-09 were £2.1 million out of a total wage bill for 202 staff
of £19million, up from £1.7 million the previous year.
The ODA also published details of £100,000 in expenses claimed in the past year -
including the £40,000 cost of sending a team on a fact-finding mission to the Beijing
Olympic last summer. ODA chairman John Armitt was the biggest claimant with £11,500
including £3,500 on taxis over the year. Deputy chairman Roy McNulty claimed £360
per night in hotel accommodation for a week-long trip to the Beijing Games.
Liberal Democrat Olympics spokesman Tom Brake said: "These bonus and expenses arrangements
are from a different era. We are now in tougher times where costs have to be more
tightly controlled. The days of bloated bonuses and expense accounts are over."
Conservative shadow Olympics minister Hugh Robertson said: "It is clearly good news
that the construction project has met all the targets thus far. However the Government
must be aware of the prevailing economic conditions so I would hope that the expenses
and bonuses would be reduced next year."
Accounts also revealed that the ODA "delivery partner", consultants CLM, billed the
ODA for £151 million last year compared with £88 million the previous year.
Reader views (6)
How can the ODA possibly justify raking in £2.6 million in salaries and bonuses when there has been a funding shortfall for the Olympic sports themselves?
Not that long ago Matthew Beard was reporting on the £50 million shortfall in UK Sport's budget, with sports like water polo, shooting, weightlifting and wrestling bearing the brunt of the cutbacks. Not a penny of those ODA bonuses should have been paid until all branches of Olympic Sport had been fully funded.
- Sally Wainman, Ipswich Suffolk, 20/07/2009 04:56
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Frank - Its better than being late and overunning in terms of costs.
I presume it will be well protected and used beforehand.
The builders who build the stadia deserve rewards...not people in suits who cannot make their minds up over the costs!
Mor why not give the money to grassroots level athletes so they can work enough to compete in the London 2012 because we might be hosting it but have little chance of doing well apart from in the usual elite sports.
- Mark, Watford, 18/07/2009 00:30
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Hang on, you mean there is actually a budget for this!?? Every time I read about it the cost just keeps going up and up.
- Mark, London, 16/07/2009 16:39
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surely a bonus incentive for the Olympics should only be paid if the work is completed on time and to the appropriate standard. [they can have a bigger bonus if they are also be arranging training for all directors/managers at both the Olympic Delivery Authority and TFL to cover the striking tube drivers over the period of the Olympics, thus helping to ensure the success of the Olympics - the tube drivers' union website is already raising the 'safety' arguments for 2012 that they run prior to a strike/demand for a pay rise]
- Andy, london, 16/07/2009 15:51
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Following a recent report that £100 MILLION had "disappeared" from the olympic purse I e.mailed Tessa Jowell on 29th June demanding to know why the ODA were refusing to publish the findings of the KPMG forensic auditors' investigation into the allegation. I have not yet had a reply to my e.mail. As tax payers are being made pay for this 2012 debacle I therefore have a right to know if my money is being misappropriated, and if any irregularities in their accounting practices are uncovered then these must be made public.
- R.F., Yorks, UK, 16/07/2009 15:48
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The games are still 3 years away. Why have they finished the stadium so early for it to sit around empty and no doubt be vandalised (it is in east london). No good planning.
- Frank, London, 16/07/2009 15:41
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