RFU: Independent review finds governing body’s pay scheme ‘appropriate’

An independent review has found the Rugby Football Union’s controversial executive pay scheme, which led to the resignation of its chairman Tom Ilube, was an “appropriate remuneration structure”.

The bonus scheme prompted widespread criticism of chief executive Bill Sweeney, who received an extra £358,000 on top of his increased salary of £742,000, while the union posted record operating losses of nearly £40m and made job cuts.

Sweeney’s total income of £1.1m in the year up to June 2024 was significantly up from the £430,000 he received in the Covid-affected year of 2019-20 after being appointed in 2019.

His bonus in 2024 was part of a ‘long-term incentive plan’ (LTIP) signed off by chairman Ilube and intended to recognise the salary sacrificed by senior leaders during the pandemic, while being linked to various parts of the organisation’s performance.

The review by Freshfields, which was commissioned by the RFU, has found that the structure of the LTIP “was appropriate in light of the goals it sought to achieve” and is a common tool in corporates, which has also been adopted in some other national governing bodies.

It found no evidence that the LTIP was designed with the aim of “compensating” individuals for loss of income during the Covid period, despite the RFU’s 2023-24 annual report stating it was.

Criticism of the RFU’s scheme has also led to a special general meeting being called.

More to follow.