Pay & Bonuses | Boss quits after receiving 'appalling' £2m bonus that 'could have improved lives'

Boss quits after receiving 'appalling' £2m bonus that 'could have improved lives'

Motability Operation’s CEO Mike Betts is set to step down after it was announced that he was in the line to cash in a whopping £2.2million bonus.

Betts has already faced censures from MPs about his “totally unacceptable” annual salary of £1.7million in the past.

Frank Field, Chairman of the House of Commons Work and Pensions Committee told Sky News:

"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."

And a National Audit Office (NAO) review has since found that the company’s customers have been conned out of £390million “more than was required” since 2008.

A statement was released saying that Betts would step down "following the implementation of actions agreed as an outcome of the NAO review” according to a Motability Operations spokesperson.

Recently, ludicrous executive pay bonuses have hit the headlines. Persimmon CEO, Jeff Fairburn, caused public outrage earlier this year when he dubbed himself 'deserving' of a £110million bonus, which was later reduced after media scrutiniy.

Luke Hildyard, Director at High Pay Centre says exclusively to Executive Grapevine that executive pay is an important issue from a "societal fairness angle" as well as a business performance issue.

He explains: “Excessive pay awards can be bad for business in the sense that they reward, and thus incentivise, mediocre performance too generously. By creating large gaps between workers at different levels of the organisational hierarchy, employers also risk demoralising and disengaging their workforce.”

Hildyard also cites CIPD research to explain that high levels of executive pay have a detrimental effect on the rest of the workforce. “In terms of fairness, executive pay is also a key driver of the gap between rich and poor. The top one per cent of UK earners take a bigger proportion of total incomes than in most other European countries,” he concludes.  



Comments (1)

  • Boris
    Boris
    Fri, 14 Dec 2018 1:22pm GMT
    This is yet another prime example of what's wrong in the UK. I am a disabled person, i rely on mobility to get around, the fact that millions of disabled people are being moved over to PIP, and losing their benefit, is bad enough. To find out that this chap was meant to get that much as a bonus is disgusting on a level i find it hard to comprehend.
    Would this person have stepped down if the NAO hadn't gotten wise to such a flagrant display of capitalism? CEO are human too, they should not be paid such extreme amounts of money. Why not take that bonus money and split is equally between all the employees of the company? Isn't this time of year meant to cover charity? Why not donate it to the local councils looking to raise council tax? Anything but paying it to one person who'll simply fritter it away!

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