Cash Payment to Transport for London's former Managing Director for Surface Transport for "Loss of Office"

Meeting: 
MQT on 2018-09-13
Session date: 
September 13, 2018
Reference: 
2018/2117
Question By: 
Caroline Pidgeon
Organisation: 
Liberal Democrats
Asked Of: 
The Mayor

Question

An Evening Standard report on the 31 May 2018 referred to £444,598 "compensation for loss of office" paid to Transport for London's outgoing Managing Director for Surface Transport, yet a TfL statement that appears on TfL's website of 8 September 2017 states that he "had intended to retire in 2015 but agreed to stay on after my appointment as Commissioner."  If the former Managing Director for Surface Transport intended to retire, how do you justify this massive payment?

Answer

Answer for Cash Payment to Transport for London's former Managing Director for Surface Transport for "Loss of Office"

Answer for Cash Payment to Transport for London's former Managing Director for Surface Transport for "Loss of Office"

Answered By: 
The Mayor

TfL's former Managing Director for Surface Transport for surface transport employment was terminated by reason of redundancy as a result of restructuring within Surface Transport. He had not retired and was entitled to 12 months' notice under the terms of his contract entered into when he joined Transport for London (TfL) in 2011. His redundancy compensation was calculated under TfL's severance rules and consisted of 12 month's salary in lieu of notice, a one-off severance payment and untaken leave.

The restructure of TfL that followed the departure of Leon Daniels saw three senior posts merged into one position. This will contribute towards overall staff savings of £111m a year by 2021/22 as part of TfL's organisational review.

TfL is undertaking the biggest overhaul of the organisation in its history. As part of this, it has reduced duplication, cut management layers and merged roles and functions, which has led to a further 11 per cent reduction in the number of people earning salaries over £100,000.

TfL have taken huge strides in cutting their year-on-year operating costs, but I want to ensure that future contractual arrangements for senior staff are in the best interests of Londoners. That is why I have already commissioned a review into notice periods and severance arrangements for senior staff to make sure they are in the best interests of taxpayers and fare payers.