RFU chairman Tom Ilube resigns amid pay controversy

RFU chairman Tom Ilube has stepped down from his position after widespread criticism from all corners of the game over the payment of executives at the organisation.

Ilube is the first high-profile casualty in the wake of the bonus scheme which was laid out in the recent end-of-year financial report. Despite a year where the organisation lost £37.9 million ($47.3m), more than 40 staff were made redundant and the England men’s team underperformed, certain employees were rewarded with six-figure bonuses.

It was part of a scheme called the LTIP — a long-term investment plan designed to keep high-level employees at companies. Bill Sweeney, the RFU CEO, was paid a total of £1.1m, including a bonus of £358,000, while five executives earned £1m in bonuses.

This all prompted outcry from the game, with three former RFU CEOs signing a letter calling the situation “untenable” and had caused “enormous and irreparable damage.”

Ilube’s resignation has come two days after the RFU confirmed there would be an independent review of the LTIP scheme.

“I have decided to step down from my role as chair of the RFU as recent events have become a distraction from the game, but will stay on to ensure a smooth transition to a new Chair as soon as one is in place,” Ilube said.

“I’m pleased that an independent review of the LTIP scheme has been commissioned and look forward to its findings once completed. 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.”

Reports in The Times suggest that former World Rugby chairman Bill Beaumont has been lined up to take on the RFU chairman position on an interim basis.

Source: espn.com