Redundancy payments for Olympic executives cost £2.8m

Dennis Hone Chief executive Dennis Hone was hired after his redundancy from his previous job

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The financial reports of the Olympic Delivery Authority (ODA) show 144 officials were paid a share of more than £2m ahead of the authority winding down in 2014.

Exit payments, to staff on permanent contracts, cost £2.8m in 2012-13, the Annual Report and Accounts said.

Chief executive Dennis Hone was paid £80,000 with £373,000 for his pension.

An ODA spokesman said hiring the best people required many to give up secure long-term jobs elsewhere.

'Tough criteria'

The financial reports note that the chief executive was entitled to receive statutory redundancy pay and a terminal bonus equivalent to 60% of his salary as part of his employment rights.

It said: "The Remuneration Committee decided to award a terminal bonus of 49% of his salary and to defer 50% of the bonus until the successful completion of the sale of East Village to QDD."

Executive Board Exit Payments

  • Dennis Hone £80,000
  • Wendy Cartwright £36,000
  • Hugh Sumner £73,000
  • Simon Wright £72,000

Source: ODA Annual Reports and Accounts

Mr Hone was hired shortly after his redundancy as chief executive of the London Legacy Development Corporation.

An ODA spokesman said London 2012 had been a "unique and challenging project and a great British success story".

He said: "We needed to recruit and pay for the best talent from the private and public sectors, requiring people in many cases to give up secure long-term jobs elsewhere, with no certainty of the project's success or getting a job after the Games.

"The exit payments for staff other than Dennis Hone comprise only - and are limited to - statutory redundancy pay, any leave they were unable to take before their employment ended, and, where appropriate, payment in lieu of notice.

"Like other staff, Dennis Hone received performance related pay, but this was far from guaranteed and was measured against tough performance criteria."

A spokesman added that the staff were employed on permanent contracts because it was not known for how long after the Games their services would be needed - and so a fixed-term contract could not be issued.

On Friday, a report for the UK Trade and Investment department suggested the Olympics resulted in a £9.9bn boost for the economy.

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