The boss of Motability Operations, a business that is backed by taxpayers is set to step down by 2020 after the criticism of his pay and a scathing investigation that disclosed that he was in line for a £2.2 million bonus.
Motability is a supplier of cars and scooters to disabled people. The chief executive of the company, Mike Betts, receives an annual pay package that has a total amount of £1.7 million. The amount is described as “totally unacceptable” by MPs.
In an investigation that was initiated by the National Audit Office (NAO), the public spending watchdog, it discovered that Betts was estimated to receive a £1.86 million bonus in addition to his salary this year. The agency discovered that it would increase to as much as £2.2 million by 2022.
The NAO also discovered that the customers of Motability had been charged with £390 million “more than was required” since 2008. The company provides the vehicles in exchange for some of their state disability allowance.
The business is a monopoly, thus it has no competition and it also benefits from tax concessions.
The chairman of the House of Commons work and pensions committee, Frank Field, stated: “It is beyond appalling to learn that money that could have been used to improve the lives of disabled people will be lining his pockets instead.”
The company has said that it will implement some changes all thanks to the review of the NAO and that Betts would be standing down from his position as the chief executive of the company once changes had been made. A spokesperson for Motability Operation said that the resignation would come “following the implementation of actions agreed as an outcome of the NAO review. “These are expected to be completed no later than May 2020.
Motability is made up of two charities and the operations business. It accounts for approximately 10 percent of all of the new cars bought in the United Kingdom.