Mota­bil­ity chief exec re­signs as bonus crit­i­cised

Yorkshire Post - - NEWS -

A COM­PANY chief ex­ec­u­tive has re­signed af­ter it emerged he is in line for a £2.2m bonus, whilst work­ing for a tax­payer-sup­ported busi­ness sup­ply­ing cars to peo­ple with dis­abil­i­ties.

The an­nual pay pack­age of Mota­bil­ity Op­er­a­tions’ Mike Betts, at £1.7m, was re­cently de­scribed as “to­tally un­ac­cept­able” by the Work and Pen­sions and Trea­sury Com­mit­tees. Now, fol­low­ing a watch­dog in­quiry by the Na­tional Au­dit Of­fice (NAO), he has con­firmed he will step down no later than May 2020, once ac­tions for the com­pany are agreed.

The NAO found he is in line for a bonus which is likely to reach about £2.2m by 2022, ac­cus­ing the Mota­bil­ity scheme of charg­ing cus­tomers £390m “more than was re­quired” since 2008.

The Work and Pen­sions Com­mit­tee’s chair­man, Frank Field, said: “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.”

As only the ini­tial al­lo­ca­tions of £258,000 have pre­vi­ously been dis­closed, Mr Field claimed Mota­bil­ity Op­er­a­tions has “se­ri­ous ques­tions to an­swer” about the ev­i­dence it pro­vided to a joint select com­mit­tee in­quiry ear­lier this year. The Work and Pen­sions and Trea­sury Com­mit­tees said ri­val firms can­not com­pete as Mota­bil­ity re­ceives tax breaks from the Gov­ern­ment and does not face any com­pet­i­tive pres­sure when ten­der­ing for con­tracts.

Re­spond­ing to the re­port, the Mota­bil­ity char­ity said it will “seek im­proved mech­a­nisms to bet­ter in­flu­ence Mota­bil­ity Op­er­a­tions’ ex­ec­u­tive re­mu­ner­a­tion”’. Lord Ster­ling, who co-founded the scheme, said he ac­cepts the watch­dog’s rec­om­men­da­tions but in­sisted there are “ar­eas still open to fur­ther de­bate”, while the finding that cus­tomers are be­ing over­charged “runs quite con­trary” to prices which are lower than the mar­ket rate.

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