Independent review finds RFU pay scheme ‘appropriate’
An independent review has found that the Rugby Football Union’s (RFU) executive pay scheme, which led to the resignation of chairman Tom Ilube, has been an ‘appropriate remuneration structure.‘
The review, conducted by law firm Freshfields and commissioned by the RFU, assessed the long-term incentive plan (LTIP) that contributed to Chief Executive Bill Sweeney receiving a £358,000 bonus in 2024, in addition to his increased salary of £742,000.
The RFU reported record operating losses of nearly £40m and and made significant job cuts during the same financial period.
The ‘long-term incentive plan’ (LTIP), approved by Ilube, aimed to recognise salary sacrifices made by senior leadership during the pandemic while being linked to various performance metrics. The review found the structure of the scheme had been ‘appropriate’ given its objectives and noted that similar schemes had been adopted by some other national governing bodies.
The findings stated there was no evidence that the LTIP had been designed to compensate individuals for income lost during the Covid period, despite the RFU’s 2023-24 annual report referencing this as a factor. The review also determined that the selection of performance metrics, including win ratios for the men’s and women’s senior teams, had been objectively acceptable.
The RFU’s executive pay scheme has been a source of controversy, leading to calls for a special general meeting, which is set to take place after the men’s Six Nations concludes on 15th March. The review noted that had the LTIP not been paid, it could have negatively impacted the retention of senior executives and the RFU’s ability to attract future talent.
The report also highlighted that Sweeney’s basic salary had risen from £430,000 to £742,000 over five years, with his total compensation remaining competitive compared to other UK national governing bodies. However, it found his pay was “not competitive” when compared with corporate roles.
Following Ilube’s resignation, former World Rugby chairman and England captain Sir Bill Beaumont has taken on the role of interim RFU Chairman while a permanent replacement is appointed.
The review has made recommendations to improve transparency, including making the RFU’s Executive Remuneration Policy public and ensuring better communication with the RFU Council, which represents the wider game in England.
The Whole Game Union, which organised a letter with 152 signatures calling for the special general meeting, has acknowledged the review’s findings but stated it would need more time to assess the full report.
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