RSPCA given official warning by regulator over sanctioning six-figure pay-off to acting chief executive

The RSPCA was wrong to sanction a six figure pay-off for an acting chief executive in a row over age discrimination, the Charity Commission said, as it criticises the charity’s trustees for “mismanaging the administration of the charity”.

The commission issued the RSPCA with a rare official warning after Michael Ward, 57, quit as the charity’s acting head in May with a reported £150,000 pay-off amid claims that he feared “unfair treatment” in the process to fill the role permanently.

The regulator's warning is only the seventh issued by the regulator since late 2016 and means that unless there are improvements in the way the RSPCA is run the regulator can take over.

The commission criticised RSPCA trustees for not ensuring the decision was made properly, "particularly given the large sum of money involved".

The regulator said a group of the RSPCA's trustees failed to ensure they were properly informed before making a settlement offer to Mr Ward and said they "failed to act with reasonable care and skill in negotiating" with the former executive.

The charity’s trustees will now have to take part in formal training so they understand their legal duties and follow the charity’s code of conduct.

Mr Ward was the third chief executive to quit in four years after Jeremy Cooper and Gavin Grant, who quit in 2014 and 2017 respectively. Two unpaid trustees ran the charity between 2014 and 2016.

The regulator said yesterday that its level of engagement had been "concerning given the charity's size and importance", adding that the “RSPCA has seen unusually high turnover among its chief executives, and significant periods of time without a substantive chief executive in post”.

David Holdsworth, the Commission's deputy chief executive, described the use of formal legal powers as a "significant step", and said it would not hesitate to take further regulatory action if the trustees do not act.

These could involve suspending trustees and directors, restricting transactions entered into by the charity, or appoint an interim manager.

He said the RSPCA's appointment of a new chief executive, the election of a new council and the introduction of a new code of conduct provided an opportunity for a "fresh start" for the charity.

He said: “The public, and the RSPCA's many members and supporters, need it to succeed and to deliver important benefits for society. They rightly expect that it should be run by its trustees to the highest standards.

“Unfortunately, that has not been the case and the charity's governance has fallen short which has led to people asking legitimate questions about the pay-out to the former executive.

“Issuing an official warning signals to the trustees that we expect them to resolve this important issue and take immediate steps to improve the charity's governance.”

The RSPCA declined to comment on the settlement, nor on whether the sum was paid to Mr Ward.

A spokesman for the charity said that 90 per cent of a governance review to reform the way the charity is run has been implemented.She said: "The RSPCA ruling council is fully committed to the very highest standards of governance.

"Council remains united in its commitment to ensuring the RSPCA is a modern, outward looking organisation that is fully focused on pursuing our goal of creating a world which is kinder to animals."

The RSPCA’s 2017 annual report and accounts – the year before Mr Ward left - show a five-fold increase in termination payments from £95,000 to £493,000.

The charity said they were “a combination of compulsory and voluntary redundancy payments plus termination payments made under settlement agreements”.