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Home / Sport / Rugby / Rugby World Cup

Take the money and walk ...

23 Jul, 2002 01:17 PM2 mins to read

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By STAFF REPORTERS

David Rutherford leaves New Zealand rugby's hotspot with 30 months to run on a three-year contract worth as much as $250,000 a year.

But the former lawyer would have left his job as Rugby Union chief executive far from empty-handed.

He was also well aware that the writing was on the wall because he admitted yesterday that he had resigned last Friday.

Employment law specialists say he would probably have negotiated an exit allowing him to take a sizeable chunk of his future earnings.

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Wellington employment expert Michael Quigg said the contract probably included provisions allowing for his exit should there be a falling-out with the board, or some irretrievable breakdown in his role as chief executive.

Mr Quigg said the exit would probably have been negotiated between Mr Rutherford and someone on behalf of the board - a view supported by reports that the rugby executive had taken legal advice over his situation.

A key result was that the board intended to restructure the chief executive's responsibilities to include a much stronger emphasis on international relationships, said Mr Quigg.

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On that basis, Mr Rutherford might have been able to argue that what was expected was not in his job description, and he deserved some compensation.

Auckland employment lawyer Phil Ahern said the fact that Mr Rutherford had offered to resign and a payment seemed to have been made pointed to a negotiated exit.

There did not seem to be any evidence to suggest misconduct by Mr Rutherford, which might have forced his hand.

Mr Ahern said such exit agreements often involved payouts of six to 18 months' salary - which suggests Mr Rutherford could have left with $125,000 to $375,000.

Mr Rutherford, who was first appointed in 1999, said yesterday: "This is it. "

He said the great personal bonus from his departure would be "getting to know my family again".

He has children aged 9, 6 and 1.

Sir Thomas Eichelbaum's full report

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