Rolls-Royce CEO's pay drops by almost £10m
chief executive officer Tufan Erginbilgic saw his pay package drop by nearly £10m in 2024, it emerged on Thursday, despite leading the company through a dramatic financial turnaround.
His total remuneration fell to £4.1m from £13.6m in the prior year, largely due to the expiration of a one-time £7.5m share award he received upon joining Rolls-Royce to compensate for lost earnings from his previous role.
The reduction also reflected a decrease in Erginbilgic's annual incentive plan payout, which dropped from £4.6m to £2.5m under an older compensation structure.
Rolls-Royce had since revised its executive remuneration scheme, introducing separate bonus and long-term incentive plans for future years.
While his total pay fell, Erginbilgic's base salary rose from £875,000 to £1.1m and was set for a further 5% increase in 2025.
His pay adjustments came amid a period of significant recovery for Rolls-Royce, which recently reinstated dividends, launched a £1bn share buyback and upgraded its profit forecast for 2024.
Since taking over in early 2023, Erginbilgic had overseen a restructuring of the company, including the elimination of 2,500 jobs and efforts to resolve long-standing supply chain disruptions.
Under his leadership, Rolls-Royce's share price had surged from around 150p to over 800p, with a notable rise following a recent London defence summit where European leaders reaffirmed their commitment to increased military spending.
The company's recent financial success marked a stark contrast to the difficulties faced in previous years when the pandemic severely impacted its aviation business, forcing Rolls-Royce to raise emergency funding.
Reporting by Josh White for Sharecast.com.
Disclaimer & Declaration of Interest
The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.