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Olympic Delivery Authority: Pay

Volume 497: debated on Monday 12 October 2009

To ask the Minister for the Olympics how much was paid in bonuses to (a) directors, (b) senior managers, (c) specialist and delivery managers and (d) executive support and administration staff in the Olympic Delivery Authority in the last 24 months. (280616)

Staff are broken into pay bands across the Olympic Delivery Authority (ODA). Details of performance related pay (PRP) payments in each pay band for the year ended 31 March 2009 are set out in the following table:

Pay band

Employee type

Numbers of employees

Total PRP paid1 (£)

Average PRP payment (£)

1

Projects/Administrative support

54

82,937

1,535

2

Executives/Officers

39

134,746

3,455

3

Managers/Technical professionals

77

686,708

8,918

4

Heads of function

28

514,882

18,389

5

Directors

7

282,629

40,375

6

CEO

1

2104,783

104,783

Total

206

1,806,685

8,770

1 Excluding national insurance. 2 Actual bonus agreed by the Remuneration Committee was £209,566. The CEO voluntarily deferred half that amount.

The equivalent figure for the year ended 31 March 2008 is approximately £1.7 million. A breakdown into pay bands for that year appears in the following table:

Pay band

Employee type

Numbers of employees

Total PRP paid1 (£)

Average PRP payment (£)

1

Projects/Administrative support

45

69,468

1,544

2

Executives/Officers

27

76,038

2,816

3

Managers/Technical professionals

66

553,602

8,388

4

Heads of function

26

487,246

18,740

5

Directors

7

316,457

45,208

6

CEO

1

204,930

204,930

Total

172

1,707,741

9,929

Note: Excluding national insurance.

To ask the Minister for the Olympics for what reasons the Chief Executive of the Olympic Delivery Authority was awarded a bonus of £209,000 in respect of 2008-09; and whose agreement was sought before the bonus was awarded. (289249)

The chief executive of the Olympic Delivery Authority (ODA), David Higgins, has a performance-based pay element within his contract agreed by the Minister for the Olympic and Paralympic Games. This is linked to delivery on time and within budget. The basis of performance pay is agreed by DCMS and the level is determined by the remuneration committee of the ODA Board.

The ODA’s Annual Report and Accounts for 2008-09, copies of which have been placed in the House Library, records the progress in 2008-09. This records significant achievements including:

keeping the programme on track and on budget;

delivering the first venue, Weymouth and Portland National Sailing Academy in November 2008, on time and within budget;

delivering the £288 million Power Lines Undergrounding Project in December 2008 on time and on budget;

starting work on the Main Stadium, the Aquatics Centre and the Velodrome ahead of schedule; and

meeting challenging cost and health and safety targets.

On the basis of his contract the remuneration committee determined that a performance related payment of £209,566 was the appropriate amount to recognise the chief executive’s performance, However, Mr. Higgins said, in July, that he had voluntarily agreed to defer half of his performance-based pay until 2012, subject to the satisfactory delivery of the current programme and scope, within the maximum available funding agreed by the Minister.

As John Armitt, Chair of the ODA said “None of our progress over the year would have been possible without the hard work of the team at the ODA led by David Higgins”.

To ask the Minister for the Olympics if she will make it her policy that the expense claims of the Chief Executive of the Olympic Delivery Authority (ODA) be itemised on the ODA’s website. (289250)

A summary of expenses for the Olympic Delivery Authority chairman, chief executive, board members and directors is available on the London 2012 website. The summary is itemised for hotel, entertainment and other costs.