Olympic chiefs line up for huge redundancy payouts

The head of the London Olympics is in line for a 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 beneficiaries is the chief executive of London 2012, Mr Deighton, who is on a salary of £480,000.

In addition to receiving a six figure bonus, the Olympics ‘fat cat’ will be eligible for a redundancy pay-out of £3,600 when he loses his job at LOCOG.

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 Olympic workers set to receive a pay-off will have worked far less.

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About elaineonyc

HR generalist who is passionate about the benefits of good HR practice. Experienced in delivering strategic and operational HR initiatives to clients in both public and private sectors. Specialises in working with SMEs.
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