Motability chief executive Mike Betts is to step down from his position by May 2020 in light of the controversy raised over his pay packet, which included a prospective £2.2 million bonus.
In March, we reported that while millions of disabled people across the UK were losing their Motability vehicles, the company were sitting on a stockpile of £2.4 billion of the taxpayer’s money, and is paying its chief executive an astonishing £1.7 million every year, per a report released by the Daily Mail.
The revelation sparked an investigation by the National Audit Office, who made the shocking discovery that: Motability’s customers had been overcharged by a staggering £390 million due to managerial blunders; despite the service being publicly funded, Motability amassed £1.05 billion in “unplanned profits”; on top of their profits, Motability sat on a reserve of £2.62 billion with £200 million going unspent each year; and Betts had been awarded a secret bonus of £2 million on top of his obscene wage packet.
In a statement, Motability Operations said: “After 16 years in the business, Motability Operations chief executive Mike Betts and the board of Motability Operations Group plc have agreed that, following the implementation of actions agreed as an outcome of the NAO review, and working to help the new chairman settle in, a suitable successor will be found, and Mike will step down from the board, no later than May 2020.
“The board is clear that recommendations made by the NAO will benefit from Mr Betts’ experience and skills to see them through.”
Lord Sterling, one of the founders of Motability and current chairman, said in a statement regarding the NAO report: “We have accepted all the NAO’s recommendations but have also made clear to them that there are areas still open to further debate.
“We will unquestionably learn and make use of many aspects of the NAO’s Report, and all of its recommendations. The National Audit Oﬃce is a unique, highly professional institution which serves this country well.”Get your copy of UNITE Magazine