Potts to take over as RAC chief executive

RAC Holdings chief executive Neil Johnson is leaving the motoring organisation at the end of this month, once the sale of RAC Motoring Services to Lex Service is completed. He will be replaced by former Reg Vardy chief executive Graeme Potts, who will become group managing director of the RAC and will join Lex's main board on August 1.

Potts will be in charge of leading the integration of RAC business into Lex Service, and put in place the battle plan to develop the massive potential for cross-marketing that the acquisition creates. So far, 80% of RAC Holdings shares have been sold to Lex Service, with the remaining 20% expected to be bought before Potts joins. Johnson is expected to receive a pay-out of more than £500,000.

The changes at the top are the second major shake-up at the RAC, with its business-to-business division also being transformed to cope with the changes from a former mutual organisation into 'a lean and mean' commercial operation.