Motability Operations has come under fire once again for allegedly awarding its CEO, Mike Betts, an additional £2m bonus on top of his £1.7m earnings.
Contracted by the charity Motability to operate the Motability Car, Powered Wheelchair & Scooter Scheme, Motability Operations has run the Scheme since the late 1970s aiming to provide ‘worry-free’ mobility vehicles to qualifying disabled users.
The organisation supplies vehicles to disabled people in return for an amount taken directly from their Disability Living Allowances (DLA) or Personal Independence Payments (PIP) – the only organisation allowed direct access to the benefits.
Motability Operations was also criticised earlier in the year when the Daily Mail reported Motability Operations had accrued over £2bn in public funds and paid its senior management team large salaries and bonuses, including £1.7m to Mr Betts.
Frank Field, chairman of the Commons Work and Pensions Select Committee, told the paper: “The idea that Mr Betts deserves a £2m bonus as well as £1.7m a year defies belief and raises further serious questions about how Motability is run.
“If this information has been withheld from MPs, someone is for the high jump. I am referring this to the NAO.”
The newspaper said that Motability has declined to say whether the CEO will receive this bonus, but denied hiding information about Betts’ earnings.
A Motability spokesman is reported to have said that ‘full details’ of Betts’ pay had been given to the Commons Work and Pensions Select Committee, stating: “Our reporting of all executive remuneration is fully in line with the Companies Act.”
The Charity Commission added that the CEO’s wages could be seen as excessive and could damage Motability Operations’ reputation.
Alongside criticisms for over-paying senior management, the report claimed that Motability has accrued a £2.4bn cash reserve of taxpayers’ money.
In response to this, Motability said that the newspaper had misunderstood this figure and that the money is in fact used to buy cars for disabled people.
The charity added that the £2.4bn also protects the organisation from the “business risks it faces”.