It seems that Ken Livingstone repaid the decades of loyalty displayed by his team of closest advisers by changing their employment contracts a little while before the election. Their fixed term contracts were amended to include a very generous payoff if Livingstone lost the election.
He lost, they now get a total of £1,600,000.
Slap wrist to me! It seems that it was central government that changed the rules on employment contracts rather than Livingstone himself.