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So Motability’s “£2.4 billion cash stockpile” is in fact nothing of the sort.

The money is needed to buy cars for people with disabilities and to protect it against business risks. That seems much more realistic than the far-right rag’s claims.

There does remain the matter of chief exec Mike Betts’s £1.7 million annual salary, which does seem exorbitant.

But an organisation’s remuneration schemes are its own business, and it seems entirely unfair of the Mail to complain about one executive being paid £1.7 million when others, such as bankers, take home far more while producing far less.

In a statement issued this afternoon, Motability Operations said: ‘The Daily Mail claims there is a £2.4 bn ‘cash stockpile’ or ‘spare £2.4bn’.

‘It’s quite clear to us that the Daily Mail has totally misunderstood what this £2.4 billion of reserves represents. It is not held as cash but is used to buy cars for disabled people. This reduces the amount of borrowing required.

‘It also underpins the scheme’s financial stability, protecting it from the business risks it faces, particularly in relation to used car values. The Charity Commission has today stated “that we consider the level of operating capital held by the company in order to guarantee the scheme to be conservative”.’

Moving on to the issue of the salary paid to Mike Betts, the charity said: ‘The remuneration of Motability operations directors is decided by the Motability operations board, based on the advice of their remuneration committee.

‘Remuneration is reviewed against the market to ensure that it is both competitive over the long term, and to ensure that any rewards are related to performance especially in relation to the quality of service provided to customers.’

It added: ‘The current chief executive of Motability Operations, Mike Betts, has been in place since 2003 and has been instrumental in ensuring the company is able to operate successfully and effectively.’

Source: Motability hits back over ‘huge cash stockpile’ and boss’s salary – Car Dealer Magazine

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