One of the main criticisms of Sweeney’s bonus was the metrics used to calculate it.
On one metric he scored 75% on “win ratio of men and women’s senior teams”, which was a blended percentage massively bolstered by the performance of the successful Red Roses team.
However, the review concluded: “We do not think that the apparent overlap in some of the performance conditions is problematic, and consider the metrics selected to be objectively acceptable.”
It added that had the “reasonable” LTIP bonus scheme not been paid it would have had “a detrimental effect” on not only the retention of the current executives but also the RFU’s ability to recruit future talent.
While Sweeney’s annual basic pay has risen from £430,000 to £742,000 over the five years he has been in charge, the review found his pay was “not competitive” compared with corporate roles, even at the lower end of the FTSE 250 Index.
However, it found the chief executive’s total compensation was competitive in comparison with other UK national governing bodies.
Meanwhile, former World Rugby chairman and England captain Sir Bill Beaumont, 72, has stepped in as chairman pending the appointment of a permanent replacement.
The review did make recommendations, including a move to make the RFU’s Executive Remuneration Policy public for greater transparency and accountability.
RFU president Rob Udwin said he was pleased the report recognised the implementation of an LTIP was “appropriate in the circumstances”.
“There are some specific recommendations and wider observations on the governance structure, the roles of Council Members on the Board and Committees, and the communication routes between the Executive, Board, Council and wider game,” said Udwin.
“It is important to recognise these, and they will feed into and inform the current Governance and Representation Review, and the Communications Review that was agreed with Council in December.”
