11:36 am, January 4, 2023
Motability Operations’ chief executive Andrew Miller was paid £673,000 last year.
The boss took home a salary of £421,000 and was paid a £170,000 bonus for the year ended September 2022 as revenue and profits soared.
Miller’s pension pot was topped up by £63,000 while other benefits to the tune of £19,000 were also enjoyed.
In total, Miller’s total remuneration rose £197,000 on the previous year.
The chief executive’s soaring pay packet came as total revenue for Motability grew to £4.7bn in 2022 – up from £4.4bn in 2021.
Rising used car prices were cited as the primary driver of a post-tax profit of £922.9m.
Motability made £723.4m alone from remarketing the cars shed from its huge fleet, up from £416.4m in 2021.
In its annual report, chief financial officer Matthew Hamilton-Jones said: ‘The strength of used car values across the industry has resulted in significant profitability upon vehicle resale at the end of lease.
‘Average gross sale values for car disposals were £15.7k across FY2022, an increase of 49.5 per cent on sale values that were achieved in FY2019 (£10.5k).’
Motability is a charity that was set up to provide cars in the easiest and most affordable way for those who get a mobility allowance.
The scheme allows those on the benefit to swap that government cash for a car which will include insurance, up to three named drivers, servicing and maintenance costs. All members of the scheme need to pay for is the fuel that they use.
Car dealers are paid a handling fee of around £400 a car for each sale under the scheme.
Motability rental revenue for 2022 was £2.17bn with disposal revenue generating £2.48bn.
Motability Operations operates a fleet of 650,000 cars worth £9.6bn – it says its cars account for around 12 per cent of all new models on the road.
During the 2022 financial year Motability Operations made a payment of £200m to Motability, the charity.
In the annual report, Miller said: ‘Our customers’ mobility is our top priority, so our business model is designed to make sure the scheme is stable and sustainable.
‘It’s at times like now, with rising costs across the board, that our model delivers and we can give our customers peace of mind that the Scheme will continue to be there for them.
‘I’m proud to lead our team, who are all fiercely committed to supporting our customers as they navigate current challenges brought on by the rising cost of living and disruption in the car market.
‘The long-term resilience of our business model means we have the financial and organisational strength to maintain the Scheme, and innovate for the future.’
Accounts for Motability Operations were filed with Companies House yesterday.
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