Rolls-Royce chairman to stay on for second term despite company turbulence

 
Francesca Washtell
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Tiefensee Visits Rolls-Royce Aircraft Engine Plant
Rolls-Royce primarily manufactures aero-engines and turbines (Source: Getty)

Rolls-Royce chairman Ian Davis has signed up for a second three-year stint at the aero-engine manufacturer.

Davis, who started in the role in 2013, had his contract renewed in February until March 2019. Last July, he appointed the Derby-based firm’s present chief executive, Warren East, who has been praised for stabilising the company after a challenging few years.

The company, once famous for its prestige cars, is now a major supplier of aero-engines to both military and civil aircraft.

It also provides power-generating turbines to the marine and energy markets.

Read more: Rolls-Royce slashes dividend for the first time in 24 years

In Davis’ first three years as chairman, Rolls-Royce put out five profit warnings and enacted a slew of senior management job cuts in a bid to save between £150m-200m.

Its share price fell to a four-year low in February after the fifth profit warning was released.

Rolls-Royce Rolls-Royce | mobile image

However, the company has also announced it will add 350 roles in the UK over the coming year, as part of plans to expand its Derby assembly facility.

Read more: S&P downgrades Rolls-Royce outlook to negative

Chief executive Warren East said: "Ian has brought tremendous insight to the board, based on his many years of experience in global business. He has significantly strengthened the board and has been great to work with.

"I could not be more pleased that he has been asked to stay with Rolls-Royce for another three years as we press ahead with our transformation."

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