Deighton's Bonus Reviewed

The Telegraph reports that, as a result of the ongoing uproar over bonuses to directors of failing organisations, that the remuneration commission will determine if the complicated series of bonuses due to London organising committee (Locog) chief executive Paul Deighton will be maintained.

In theory Deighton could earn a £1M bonus, which he has already stated will go to charity.

The remuneration committee will also review the bonus of the previous chief executive of the Olympic Delivery Authority, now Network Rail chief Sir David Higgins.

Olympic Medals won during the Beijing 2008 Olympics

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Pissing In The Wind

The Olympics minister, Hugh Robertson, has engaged in the futile activity of pissing in the wind by urging the executives of the Olympic Delivery Authority to exercise some restraint wrt their pay and bonus packages.

It was revealed this month, for example, that ODA chief executive David Higgins is Britain's highest paid quango chief, on £384K last year. In fact, 9 ODA executives earn more than the Prime Minister's annual salary of £142,500.

Mr Robertson has suggested that ODA executives could make a gesture of deferring their bonuses until after the Games in 2012.

Fat chance!

Olympic Medals won during the Beijing 2008 Olympics

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Bonus Deferred

Paul Deighton, CEO of London Organising Committee for the Olympic Games (Locog), (salary £453,440 for the year to April 2009) has deferred £185K bonus payment until after the 2012 Games.

Locog made a loss of £38M last year.

Olympic Medals won during the Beijing 2008 Olympics

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Snouts In The Trough

How reassuring to see that, despite the current recession and a budget that is out of control, those tasked with keeping the costs of the London Olympics 2012 under control are making sure that they are personally not in danger of facing any undue financial hardship.

CLM, a consortium of surveyors overseeing the Olympic construction project, received £151M last year (double what had been previously paid).

On top of this largess to the consultants, Olympic bosses found the time and the funds to award themselves some very generous pay rises.

Staff at the Olympic Delivery Authority (ODA) took home £30M, including £2M of bonuses. David Higgins, CEO, received took home £537K (generously deferring half of his £201K bonus until 2012).

Howard Shiplee, director of construction, claimed £19,343 in expenses, including £11,478 on hotels and nearly £2,280 on taxis.

It is reassuring to know that those who are running this "venture" on behalf of the taxpayer, really know and understand the true value of money.

Our money safe in their hands!

Yes?

Olympic Medals won during the Beijing 2008 Olympics

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Olympic Fat Cats

Despite the UK being in the grip of its worst recession for decades, it is comforting to know that those people who are "running" the London 2012 Olympics are still able to earn a crust.

The chief executive of LOCOG the 2012 organising committee and former banker, Paul Deighton, has a package worth up to £750,000. He has earned a a performance related windfall of up to £100K, on top of his £450K base salary and guaranteed two year loyalty bonus of £204K.

Deighton is not alone in making a nice little earner out ot he Olympics. Salaries at the Government Olympic Executive totalled £3.9M in the last 12 months, that is a staggering 30% higher than the previous year.

Precisely why government Olympics staff are able to buck the market in this way is not clear. It should also be noted that the body that they work for in fact duplicates much of the work being done elsewhere on the Olympics by other bodies.

The British taxpayer is being taken to the cleaners, by a government bulldozing it Olympics vanity project through against the wishes of the electorate.

Olympic Medals won during the Beijing 2008 Olympics

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Lawyers To Make a Killing

Every cloud has a silver lining, and it should come as no surprise to learn that even if the Olympics are a colossal waste of money and that we are facing the worst recession for decades, lawyers will still make money out of the games.

That at least is the view of Charles Tomlinson of Mace & Jones'.

He is quoted on Heating and Ventilating News:

"When London was awarded the Olympics the construction sector was booming. It was a welcome bonus for the sector. Now it will be seen as vital for the survival of many companies at time of unprecedented crisis in the sector.

With margins going through the floor and the commercial sector in freefall, all parties will be looking to protect their positions. This is not the ideal environment for a project of the scale and importance of the Olympics.

If, or example, you are waiting payment, does the other party have the means to pay? If so, a well timed adjudication can protect cash flow.

In relation to more complex disputes, parties must consider alternative forms of dispute resolution such as mediation, expert determination or just good old fashioned commercial negotiation to keep the project alive".

The lawyers will at least do very well out of the games!

Olympic Medals won during the Beijing 2008 Olympics

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