RICS chief executive on why he’s ‘never’ thought of quitting

Sean Tompkins has had a rough few months. The body he oversees has been ripped apart by its members and the press over how it has been run and how much it pays its senior staff, including him. But despite all that, the RICS chief executive is adamant he’s not quitting and that he is worth every penny of his £510,000 pay package, as determined by the remuneration committee – and, unless a review into various controversies decides otherwise, he sees no need yet to apologise for how the situation has been handled. Peter Oldham QC’s independent probe into the RICS governance scandal is expected to conclude next month, so Tompkins declines an invitation to apologise to RICS members for the events of recent months until the findings are made known. “Let’s firstly let the review conclude, because I think there’s a danger here that a lot of people are arriving at views and decisions ahead of actually seeing the [outcome],” he tells EG. “It would be wrong to debate that now. [The independent review] will conclude the answers, and let’s allow that, but at the same time let’s use this time to think about the future.” Tompkins maintains that RICS’s contributions to the government on cladding guidance, to the EU on data strategies and to the G20 on infrastructure reform show it is still held in high regard, even as critics say recent controversies have damaged its reputation. “When we talk about reputation, it’s important to get balance in all of that,” says Tompkins. “I am clear, though, that there are many members of the profession who want to express their voices and are unhappy. I am also clear there has been adverse media coverage. As the CEO, you don’t feel great about that. No one ever wakes up wanting to read some of the things you’re reading. But equally, the job of the CEO is to work through the problems.” The argument for self-regulation One way that Tompkins aims to work through these problems is a wide-ranging strategic purpose review. The review itself has been criticised for being internally run by Tompkins and president Kathleen Fontana, but Tompkins stands by the decision. “It would seem very strange if the chief executive and the president are not able to get out and encourage 134,000 members to express their views,” he says. “At the end of the day, the final decisions on any strategic review will be made by the governing council that was elected by the profession.” Could the review go as far as exploring RICS’s foundations as a self-regulated professional body? Tompkins is keen to encourage “a real diversity of thought” from all aspects of the profession – 85 roundtables will be run around the world in the coming weeks – but says self-regulation “remains a very good model”. “I’ve come through many different industries, particularly financial services, and I would argue that you want the profession’s voice as part of standard-setting and guidance,” says Tompkins, who was formerly marketing and distribution director at insurer Prudential before joining RICS as chief operating officer in 2002. “If you don’t have that, you can miss things. Equally, where regulation has been removed from professions, it comes at quite a cost to the profession, literally – cost in terms of ability to bring a voice, as well as [financial] cost. It’s a hard model to get right, but I think it’s the right model, and I still believe it’s the right model for this profession because it’s so diverse.” The review is also likely to explore RICS’s relevance to vast chunks of the property industry. Its remit ranges from geomatics – which includes sea floor mapping – to arts and antiques. Industry dissatisfaction with the institution’s international expansion drive is another well-documented strand in its history. But Tompkins disagrees that RICS has become too big to deliver on its purpose. In fact, he says it is on track to grow even bigger. “We set out to ensure that those people that want to join a profession can; [where,] in those markets of the world where people value being in a profession, they can qualify, and therefore the size of the organisation is largely dependent on its relevance and demand,” he says.  “Over the past 11 years of being CEO, the built environment and natural environment that supports that have never been more in the spotlight. I would see a continued increase in people wanting to be part of the built and natural environment. [RICS] will grow as a result.” Justifying a £510k pay packet As chief executive of a non-profit, Tompkins pocketed more than £510,000 in 2019, including just over £250,300 in bonuses. That sum has led many critics, including RICS members, to question what he does to earn this amount. He declines to disclose his wages for 2020 until they are published in the organisation’s own report. “Look, I am paid to run and develop a global professional body,” Tompkins says, adding: “I’m expected to run a global organisation that has multiple entities all around the world, that is a professional body that self-regulates, and ultimately my salary is judged on the basis of that. “It’s not a simple answer and I have to be honest, [how the CEO’s remuneration is assessed is] a complex process.” Tompkins stresses that “a lot of people write to me as if I decide my pay package, which isn’t how it works”. The remuneration strategy is set by RICS’s remuneration committee, and then linked to Tompkins’ objectives as chief executive. “The committee arrives at what the right answer is for the CEO,” he adds. “And they benchmark these results and decide on the answer.” Despite making 140 redundancies in November and furloughing staff, the organisation has also awarded discretionary bonus payments to its “highest performers”. “I can understand why people are questioning [remuneration],” says Tompkins. “But CEOs are paid to take some pretty tough decisions. I’ve had to make some as part of our Covid response. “I’m not sitting here with any level of pride and satisfaction of having to make any redundancies in the organisation. It’s the hardest thing you’d ever have to do. But equally, you have to look at the realities of the organisation. I have to make sure it can remain financially sound and sustainable and can continue to deliver for the future.” Tompkins says that although the remuneration committee decided not to trigger the bonus scheme in light of the pandemic’s impact on the business, it “allowed” discretionary bonus payments to incentivise certain team members, including employees not at executive level. Board members took voluntary pay cuts of 15%, while senior managers agreed to 12.5% reductions. “All of these things are a balance,” says Tompkins. He adds that RICS needed to furlough employees, “otherwise we would have made people redundant substantially earlier”. Will RICS now pay back the government grants used to furlough staff? “If our financial position allows – like everybody, we’ve got to get through this cycle and to see where ultimately the organisation is – we’d look to repay those furlough monies,” says Tompkins. Tompkins says that RICS has reached out to any members facing financial difficulties as a result of Covid-19 to offer its support. Nearly £1.5m of concessions have been made on subscriptions for members who have become unemployed as a result of the pandemic, which “could” reach “£2m or more” by the time it includes its latest subscription round. “We’ve also awarded, during the course of last year, millions of pounds of free CPD that 40,000 members took up,” says Tompkins. “That cost millions, and it was for free.” He urges the industry to reserve judgment on whether he has “done a good job” as chief executive until the conclusion of the independent review and publication of RICS’s financial results at the next annual general meeting. “My message would be that I do understand, but equally, people [should] allow things to conclude, look at what our performance was this year in a really tough period, read the independent review, and make judgments at that point,” he says. Inner circle Events of recent months have done little to shake the perception of a club of individuals at the top of RICS that enjoy the prestige – and financial rewards – of senior roles, without focusing on whether the organisation delivers sufficient value to its members. Tompkins says he “understands” why people believe this, but that the reality is that the top jobs are “far from cosy”. “There is a governing body that sees very clearly what I do, [and] what other members of the exec and other boards do,” he says. “I can promise you, it is far from cosy in those roles.” That governing council – which reports to the privy council – is chaired by former RICS president Chris Brooke, whose interim role at the helm was recently extended. Brooke purportedly played a key role in dismissing four non-executive directors in 2019, shortly before becoming its chair. Additionally, former governing council members recently wrote to RICS to refute its claims that the council was “kept informed” of the events leading to the NED departures. Surely these instances have only magnified that “club” image? Tompkins disagrees. “[Brooke] is the interim chair, and the organisation had extended his interim role until November 2021 to get us through this really difficult period of Covid response,” Tompkins says, throwing down the gauntlet for his critics to step forward at RICS’s next governing council elections. “I can understand the perception that people will have, but equally my answer would be: get involved then,” he says. “Come and see the reality. Put yourself forward for the next election, get onto the governing body and make judgments from a real position of understanding it from within.” Many leaders in Tompkins’ position might consider resigning amid so much controversy. But quitting has not crossed the chief executive’s mind. “Never,” he says. “At the end of the day, your role as the CEO is to work through the challenges that are faced. If the governing body, [which] is my employer, felt differently then they would let me know, I’m sure.  “Equally, as the CEO, you get to a point when you know the [time is right] for change. But right here, right now, I’ve got to work through these challenges.” To send feedback, e-mail pui-guan.man@egi.co.uk or tweet @PuiGuanM or @estatesgazette Image © RICS