Rolls-Royce shares fell four per cent this morning after it announced an executive from its largest shareholder, activist investor Value Act Capital, has resigned from from the engineer’s board.
Bradley Singer, a non-executive director for the last nearly four years, stepped down this morning. He is chief operating officer of Value Act.
When he joined in 2016, the engine-maker was in turmoil, having issued a string of profit warnings. Singer said in a statement that the company was now on a “solid path forward”.
Value Act owns a nearly 10 per cent stake in the blue-chip firm.
When Singer joined the board, chairman Ian Davis said he would stay on as long as Value Act remained a significant shareholder.
Singer said: “Since I joined the board nearly four years ago, Rolls-Royce has undertaken many significant initiatives and faced challenges head-on.”
Rolls-Royce has been dogged by problems with its Trent 1000 engines in recent years, in which turbine blades deteriorate faster than expected.
The problem has grounded scores of passenger jets and already cost the firm billions of pounds.
Rolls Royce said in September it will take longer than expected to get the engines back in the air after one fell apart over Italy earlier this year.