Olympic chiefs line up for huge redundancy payouts

The head of the London Olympics is in line for a £130,000 redundancy pay-out when the Games has finished.

Former Goldman Sachs banker Paul Deighton, 55, is among up to 2,000 Olympics staff who will be entitled to payments after London 2012 has ended.

Bosses at the London Organising Committee of the Olympic Games (LOCOG) are to splash out several million pounds in pay-offs to workers on fixed contracts. The money will be raised through ticket sales and other commercial sources.
One of the biggest beneficiaries is the chief executive of London 2012, Mr Deighton, who is on a salary of £480,000.

The Olympics 'fat cat' will be eligible for a redundancy pay-out of two weeks' salary for each of the seven years he will have worked for LOCOG by the time he loses his job - equivalent to about £130,000.

Critics are likely to argue the pay-offs are evidence that the Games are turning into a 'gravy train' at the expense of ordinary members of the public, who are having to fork out huge sums for tickets. Olympics organisers are looking to make £500million from ticket sales in their attempt to raise £2billion through private means.

Prices range from £20 to £725 for the showpiece 100 metres final, and reach £2,012 for the opening ceremony on July 27. But officials insist LOCOG is obliged under employment law to make redundancy payments to staff on 'permanent' fixed contracts.

However, statutory redundancy pay comes into effect only after working for a company for two years and the majority of the of the Olympic workers set to receive a pay-off will have worked far less.

 

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