The DMs at my place are "traditional", in the sense that they are qualified drivers of several years' standing.
They conduct initial assessments for trainee drivers (i.e. award qualified driver status), investigate incidents, conduct check rides, interpret downloads. They also do the usual line management stuff on top.
Pay is a little more than driver pay, but swings and roundabouts as (I believe) they can't do overtime. They do a 5 day "office-hours" week, with regular "on call" shifts where they can be called out in the event of an incident.
The idea of someone being a "line manager" to a driver, without having done the job themselves, and having to rely on a competency manager to do the operational stuff, seems like a strange arrangement.