Rolls-Royce Executive Directors Won't Get 2019 Pay Rise

By Anthony O. Goriainoff

Rolls-Royce Holdings PLC (RR.LN) said Monday that executive directors won't receive a salary increase this year, but that its long-term incentive plan, or LTIP, has paid out for the first time in four years.

The British aircraft-engine maker's remuneration committee approved the LTIP payout as the 2016 targets have been met, despite the well-publicized operational issues regarding the Trent 1000 engines and delays delivering widebody airliner engines.

The committee's Chairman Ruth Cairnie attributed the decision to actions taken by Chief Executive Warren East and his team. The disclosure was made in the company's 2018 annual report that was made public Monday.

Mr. East's total remuneration package for 2018 was 3.9 million pounds ($5.2 million), up from GBP2.3 million in 2017. His payout includes a basic salary of GBP944,000, an LTIP payout of GBP1.7 million and bonus of GBP1 million as well as other benefits.

The company also said that Chief Financial Officer Stephen Daintith's package was GBP3.1 million in 2018, up from GBP2.4 million a year earlier. His payout included a base salary of GBP680,000, a bonus of GBP608,000 and LTIP payout of GBP1.6 million.

The company said it provides competitive salaries suitable to attract and retain individuals of the right caliber to develop and execute the business strategy. It added that the committee has reviewed the salary levels of the executive directors and decided not to make any increases for 2019.

Shares at 1248 GMT were down 2.4% at 882 pence.

Write to Anthony O. Goriainoff at [e-mail]

(END) Dow Jones Newswires

March 25, 2019 09:13 ET (13:13 GMT)

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