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Six-figure bonus for tram boss

Edinburgh to pay out if project is completed on time and to budget
Edinburgh City Council’s transport boss will claim a bonus of up to £340,000 if the new £498M tram project finishes on time and to budget, it was revealed this week.

According to documents released under the Freedom of Information Act, Transport Initiatives Edinburgh (TIE) chairman and chief executive Willie Gallagher’s new bonus also comes with a salary rise from £100,000 to £170,000.

The documents show that his bonus was raised from 30% to 50% a year. Gallagher, a former Scottish Power director, re-negotiated his contract with Edinburgh City Council in August, 14 months after he joined TIE, the council’s arms length transport delivery company and tram client.

A TIE spokesperson said: “TIE competes with other major UK infrastructure projects to recruit the best possible people. It is very important as we move into the construction phase that we retain the leadership skills and expertise of the executive chairman.”

Phase one of the tram scheme is scheduled to open in February 2011. The main construction work is likely to begin early next year.

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