Rugby Football Union to Review Executive Compensation Amidst Grassroots Discontent

The Rugby Football Union (RFU) has initiated an independent examination of its contentious executive compensation structure. This development occurs as an expanding grassroots movement poses a risk of ousting chief executive Bill Sweeney and chairman Tom Ilube within weeks. Ilube’s potential removal hinges on a two-thirds majority vote by the RFU council. Sweeney and Ilube may confront a significant vote of no confidence early next year, as a proposal advocating for their removal garners backing from grassroots clubs. Should the motion achieve the required 100 signatures from clubs across England, a special general meeting is mandated to take place within 45 days. This timeframe indicates that Sweeney and Ilube’s leadership will be determined by the close of February. Correspondence from those backing the motion, reviewed by the BBC, indicates that it has already secured endorsements from 187 clubs, a number well exceeding the requirement to jeopardize Sweeney and Ilube’s roles. Subsequently, a two-thirds majority vote would be necessary to unseat chairman Ilube and compel RFU directors to dismiss chief executive Sweeney, whose remuneration package initiated the current crisis within English rugby’s leadership. In November, it came to light that Sweeney received £742,000 for the year concluding in June 2024. This figure represents a substantial increase from the £430,000 he earned in the Covid-impacted year of 2019-20, following his appointment in 2019. Furthermore, his 2024 compensation included a £358,000 bonus, which formed part of a ‘long-term incentive plan’ (LTIP). This scheme, approved by chairman Ilube, aimed to acknowledge salary reductions made by senior executives during the pandemic and was tied to various aspects of the organization’s performance. In summary, Sweeney’s total remuneration amounted to £1.1m. The RFU reported record operating losses of £37.9m last month, just weeks after revealing intentions to dismiss more than 40 employees in its most recent series of redundancies. The RFU had previously reduced its workforce in 2018 and 2020. The RFU council, tasked with representing the national sport to the organization’s executive body, convened an emergency meeting on Wednesday. During this meeting, it confirmed “an immediate independent review of the circumstances that led to the LTIP being introduced and executed”. In an official statement, the RFU declared: “Council recognises the reputational damage that has been done to the sport over the past month and is committed to rebuilding trust with our member clubs.” The council additionally requested “a radical change in the way that the RFU communicates, setting out clearly all the work that is being done to address the issues that clubs have raised”. RFU president Rob Udwin stated, “One of council’s clear responsibilities is to hold the board to account.” He is scheduled to meet with Sweeney and Ilube on Thursday to “agree a way forward,” adding, “Tonight’s meeting and its outcomes is a clear demonstration of this process in action.” BBC Sport has interviewed several RFU employees who conveyed staff dissatisfaction regarding the remuneration levels of senior personnel. Concurrently, two former leaders, Graeme Cattermole and Francis Baron, have publicly urged Sweeney and Ilube to resign, external concerning this matter. The proposed motion extends its critiques beyond merely the levels of executive compensation. It further enumerates several additional reasons for its endeavor to remove Ilube and Sweeney, such as the financial deficits sustained by the RFU, its management of the second-tier Championship, and a mismanaged alteration to tackle height regulations in 2023. The motion asserts that “the thousands of volunteers who keep the game alive and running have now lost confidence and trust in the leadership of our game”. Regarding the compensation of senior executives, the motion further states: “The RFU has received a large amount of sustained negative reaction across stakeholders throughout the game.” The referees’ union, along with clubs from the Championship and National League 1, endorsed the demand for leadership changes prior to the council’s emergency session. The prospect of the 62-member council, comprising delegates from the county game, universities, the military, lower leagues, and players, initiating its own action against the leadership was avoided because the meeting’s procedures, under RFU rules, did not permit a vote. Andy Cosslett, who preceded Ilube as RFU chairman and originated the contentious LTIP scheme, was present to address inquiries. Other officials elaborated on how the LTIP compared to compensation frameworks in other organizations and how the RFU’s performance was evaluated against its objectives. Oxfordshire RFU, which holds one seat on the council, stated that it had, external “listened to our clubs and decided to add our voice to call for a special general meeting of the RFU”. An RFU spokesperson commented, “We will respond to any potential meeting requisition if and when it is received in the appropriate format.”