TfL Olympic and Paralympic bonus payouts

Meeting: 
MQT on 2012-09-19
Session date: 
September 19, 2012
Reference: 
2012/2306
Question By: 
Caroline Pidgeon
Organisation: 
Liberal Democrats
Asked Of: 
The Mayor

Question

Please provide the following details: a. The total additional revenue that TfL received during the Games b. The total cost to TfL of bonus payments to TfL staff and executives

Answer

Answer for TfL Olympic and Paralympic bonus payouts

Answer for TfL Olympic and Paralympic bonus payouts

Answered By: 
The Mayor

a) Revenue and the Games

Analysis of the effects on revenue of the Olympics and Paralympics is continuing and will not be completed until the end of the month.

However, it should be remembered that TfL and LOCOG agreed a funding deal whereby TfL provided free travel for the day for spectators and free travel for the Olympic period for the games family, while LOGOG provided funding for TfL's additional costs due to the Games.

This means that while journeys on the TfL network, including the free journeys above, have been at record levels for much of the Games period, the impact on revenue has been much more muted.

This is in line with TfL's expectation, given the nature of the deal with LOCOG, that the impact of the Games on revenue would tend to be neutral overall, taking all TfL operations together, with reductions in domestic and commuter traffic offsetting additional revenue from those visitors without free travel.

b) The total cost to TfL of bonus payments to TfL staff and executives

There have been no extraordinary bonuses made to TfL staff or executives because of the Olympics or Paralympics. The performance of individual TfL employees in relation to the delivery of the 2012 Games will be assessed and rewarded through TfL's normal performance management and reward mechanisms.

As part of a deferred incentive arrangement introduced in 2010 for TfL's senior executives (Directors, Chief Officers and Commissioner), 2012 Games delivery targets formed one set amongst a raft of other medium term targets aligned to my Transport Strategy, covering the 2 year performance period to 31 March 2012, and the Games period itself. Within the Commissioner's and Chief Officers' deferred incentive arrangement, the Olympics targets were set as an overlay of the other plan targets and were therefore pre-eminent within the plan. However, no incentive or performance bonus arrangement exists within TfL that is solely related to the 2012 Games delivery.