REG - Rolls-Royce Holdings - Chief Executive and Board succession

Rolls-Royce HoldingsAnnouncement

24/02/2022 07:18

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RNS Number : 6374C  Rolls-Royce Holdings plc  24 February 2022

24 February 2022

 

CEO AND BOARD SUCCESSION

 

Rolls-Royce (LSE:RR., ADR:RYCEY) announces that Warren East, Chief Executive,
has decided to step down at the end of 2022, after nine years on the Board and
almost eight years as CEO. As a result, the Board will now launch a thorough
and extensive search for his successor.

 

Anita Frew, Chair, said: "Warren is an exceptional leader and has set a
pioneering vision and strategic direction for Rolls-Royce to lead the
transition to net zero across our markets. He has shown incredible tenacity,
steering the Group through unprecedented times, and driven substantial
cultural change throughout the organisation. He has a real passion for the
business which engenders pride in our people and confidence among our
stakeholders. He has led Rolls-Royce to a point where we have substantially
delivered on our recent commitments to investors and are now firmly set on the
path to a more prosperous and sustainable future. We are now running an open
and transparent process to find his successor and ensure a smooth transition.
I know that during this time, Warren will continue to lead Rolls-Royce with
all the dedication he has shown throughout his tenure."

 

Warren East, CEO, said: "It is a privilege to lead Rolls-Royce - it's a job
which I thoroughly enjoy. There have been challenges, but we have built on the
cultural and organisational improvements we have made to work through them,
deliver on our commitments and create a better business. We have simplified
the Group, fundamentally improved our underlying operations and driven
long-term change. Rolls-Royce is a dramatically different business today: a
leading industrial technology company that is not only addressing the energy
transition but embracing the opportunity it presents to generate substantial
business growth, including through the creation and nurturing of new
businesses with very significant potential. With the advances we have made,
the momentum and energy we have shown and our firmer financial foundations,
this is the right moment to look to the future. I am thoroughly committed to
leading this business while we work towards a smooth leadership transition.
The passion and skills of our people, the strength of our technologies and the
depth of our relationships, give Rolls-Royce tremendous opportunities to
pioneer the vital solutions our planet needs to create a net zero carbon
future. This is the biggest technological shift for the Group since the
arrival of the jet engine."

 

Non-Executive Director changes

 

Over the last year we have strengthened the Board's skills and experience in
aerospace, engineering, operations, technology and digital transformation,
with the appointments of Paul Adams, Mike Manley and Wendy Mars as
Non-Executive Directors.

During 2022, we will see two further departures from the Board. Lee Hsien Yang
will have completed his nine-year term of office at the end of 2022. In
addition, Irene Dorner has indicated her intention to step down and will not
be standing for re-election at this year's Annual General Meeting on 12 May.
Irene is currently Chair of the Remuneration Committee and Employee Champion.
Irene has been a valued member of the Board, a thoughtful Chair of the
Remuneration Committee through some challenging periods for the Group and a
very engaged Employee Champion, ensuring the voice of the employee is heard in
the boardroom. The Board would like to thank her for her dedication during her
time with Rolls-Royce.

As a result, we are strengthening the Board's international, geopolitical and
remuneration experience and we are pleased to announce the appointment of
Jitesh Gadhia, who will join the Board on 1 April 2022. Upon his appointment
to the Board, Jitesh will become a member of the Nominations & Governance
and Remuneration Committees. He will Chair the Remuneration Committee from the
conclusion of this year's AGM. Jitesh has extensive experience of a wide range
of industries and partnership structures from his time as an executive in the
banking and private equity sector; where he held senior roles at Blackstone,
Barclays Capital and ABN AMRO. He is a member of the UK-India Advisory Council
and also a trustee and chair elect of the British Asian Trust, which tackles
poverty, inequality and development challenges in South Asia through the use
of social finance products.

 

Jitesh is a non-executive director of Taylor Wimpey plc, where he has been a
member of the remuneration committee since March 2021; a non-executive
director of Compare the Market Limited, where he chairs the remuneration
committee; and a non-executive director of Accord Healthcare Limited. He is
also an HM Treasury appointment to the Board of UK Government Investments
Limited. There are no matters that would require disclosure under 9.6.13R of
the Listing Rules of the UK Financial Conduct Authority in respect of the
appointment of Jitesh.

 

Sir Kevin Smith currently serves as Senior Independent Director and Chair of
the Science & Technology Committee, in addition to bringing valuable
engineering expertise. Now in his seventh year on the Board, Sir Kevin has
indicated his wish to relinquish both his Senior Independent Director and
Committee Chair responsibilities. With effect from the conclusion of this
year's AGM, George Culmer will be appointed Senior Independent Director and
Paul Adams will be appointed Chair of the Science & Technology Committee.
George is an experienced senior independent director and chair with strong
links with institutional investors and other stakeholders. Paul brings to the
Science & Technology Committee his extensive aerospace and engineering
expertise.

 

This announcement has been determined to contain inside information.

 

Officer responsible for making the notification:

 

Pamela Coles

Chief Governance Officer

 

For further information, please contact:

 
Media

Richard Wray

Director of External Communications & Brand, Rolls-Royce plc

Tel +44 (0) 7810 850055

Richard.Wray@Rolls-Royce.com

 

Investors

Isabel Green

Head of Investor Relations, Rolls-Royce plc

Tel +44 (0) 7880 160976

Isabel.Green@Rolls-Royce.com

 

www.rolls-royce.com (http://www.rolls-royce.com)

 

About Rolls-Royce Holdings plc

 

1.   Rolls-Royce pioneers the power that matters to connect, power and
protect society. We have pledged to achieve net zero greenhouse gas emissions
in our operations by 2030 (excluding product testing) and joined the UN Race
to Zero campaign in 2020, affirming our ambition to play a fundamental role in
enabling the sectors in which we operate achieve net zero carbon by 2050.

2.   Rolls-Royce has customers in more than 150 countries, comprising more
than 400 airlines and leasing customers, 160 armed forces and navies, and more
than 5,000 power and nuclear customers.

3.   Annual underlying revenue was £10.95 billion in 2021, underlying
operating profit was £414m and we invested £1.18 billion on research and
development. We also support a global network of 28 University Technology
Centres, which position Rolls-Royce engineers at the forefront of scientific
research.

4.     Rolls-Royce Holdings plc is publicly traded company (LSE: RR., ADR:
RYCEY, LEI: 213800EC7997ZBLZJH69)

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