Tube chief's £1m bonanza

The American in charge of London's ailing Tube network has been offered a £1million extension to his contract, it emerged today.

The two-year package for Bob Kiley, the capital's transport commissioner, will include a possible £500,000 in performance-related bonuses.

Mr Kiley, 69, who also has the use of a £2.1 million house in Belgravia paid for by Transport for London, will be kept in work until the age of 71 under the deal, making him Britain's highest-paid public servant and pensioner. He currently earns about £360,000 in salary and benefits such as pension. But his bonus payments - full details of which have never been revealed - are worth at least £250,000 a year.

The deal comes as the Tube faces growing financial problems after major disruption to the Central and Northern lines following accidents at Chancery Lane and Camden Town stations last year.

Ken Livingstone, announcing Mr Kiley's appointment in December 2000, described him as one of the "world's greatest experts on transport with a proven track record", who had transformed New York's metro system.

The Mayor added: "He will have the opportunity to earn £2 million over four years."

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