Rolls-Royce chief set for £18m reward for turnaround – Daily Business

The Rolls-Royce plant at Inchinnan near Glasgow airport

Rolls-Royce chief executive Tufan Erginbilgic is poised to receive an £18 million pay packet that will be one of the biggest in the FTSE 100.

Mr Erginbilgic, who took charge of the firm at the start of 2023, will be rewarded for the company’s remarkable turnaround.

When he joined, Mr Erginbilgic received a ‘golden hello’ shares scheme valued at just over £8m, when the firm’s stock was languishing below 100p.

Since then, it has rocketed to a peak of 1420p and is now trading just below 1300p despite the current market volatility.

It is one of the UK’s most valuable firms with a market capitalisation of £106bn.

Mr Erginbigic’s annual bonus entitlement will increase from two to three times his base salary and he has won support from a shareholder group that normally questions executive remuneration.

A report from the Institutional Shareholder Services (ISS) – which institutional investors closely monitor – recommends shareholders vote in favour of the new bumper package, according to Sky News.

“The company’s arguments surrounding executive retention, in the context of the above performance, are compelling,” it said.

Earlier this year, the company outlined plans to return billions to investors over the next two years.

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