Shares in troubled engineering giant Rolls-Royce opened four per cent higher this morning, at 1,049p, after chief executive John Rishton announced his intention to stand down.
Rishton, who has been with the company for four years with the company, was promoted to the top job four years ago. He'll step down on 2 July.
He said he had "decided it is time for a change of lifestyle". In a statement issued by Rolls-Royce this morning, he added:
We have made good progress transforming Rolls-Royce and have a strong team in place. While there is clearly more to do, the company is better placed to face the future.
Rishton was praised by Rolls-Royce chairman Ian Davis, who said during his tenure the company's profits had soared 69 per cent and the share price grew 63 per cent. However, he has also presided over a troubled period for the company, which has been dragged into scandals over bribery in both China and Brazil in recent years.
Warren East, Rishton's successor, is the former chief executive of British chip designer Arm Holdings. East, who has been a non-executive director at Rolls-Royce since January 2014, was in charge of Arm during the frenzied days of the introduction of smartphones.
East will start on a basic salary of £925,000. He said:
I am delighted to be appointed as chief executive of Rolls-Royce. It is well positioned in growth markets, with world class engineering skills and a proud record of innovation and delivery. I have a strong desire to return to an executive position with the energy and enthusiasm a role like this demands.