Tom Ilube, Chairman of the Rugby Football Union (RFU) Board, has announced his resignation following widespread backlash over controversial executive bonus payouts.
The decision comes as the organization faces criticism for substantial bonuses awarded despite significant financial losses and staff layoffs.
The controversy stems from a long-term incentive plan (LTIP) that rewarded RFU Chief Executive Officer Bill Sweeney and other senior executives with significant bonuses.
Reports indicate that Sweeney received a total compensation package of £1.1 million (approximately $1.38 million) in the last accounting year. This included a £358,000 bonus, awarded despite the RFU recording a record operating loss of £37.9 million ($48 million) and laying off over 40 employees in September.
In addition to Sweeney's bonus, five other executives collectively received £1 million under the LTIP, a scheme implemented during the COVID-19 pandemic following initial pay cuts.
The payments have been heavily criticized by former RFU leaders, grassroots rugby stakeholders, and the RFU Council, which called for accountability and action.
On Friday, December 20, Ilube vacated his position as RFU Chairman, citing the scandal as a "distraction from the game." In his statement, Ilube expressed support for an independent review into the LTIP scheme and emphasized his commitment to ensuring a smooth leadership transition.
“It has been an honour to Chair the RFU, and I look forward to once again enjoying the game that I grew up with from the touchline and watching it grow,” Ilube stated.
The RFU has commissioned an independent review to investigate the bonus payouts and the processes behind them. The findings are expected to address concerns raised by critics and bring clarity to the organization's decision-making.