£9m windfall for new boss of Rolls-Royce
rOLLS- royce has named former BP executive Tufan erginbilgic its next boss – handing him an initial pay package worth almost £9m to lure him from his current private equity role.
The dual UK-Turkish national will take over from Warren east, who has run the Derbybased aero engine maker since 2015 and announced in February that he was leaving.
erginbilgic has been appointed to one of the top jobs in British industry at a time when rolls-royce is seeking to recover after a painful restructuring during the pandemic – and adapt to a greener future in the aviation sector.
Trained as an engineer, erginbilgic worked for Warner Bros home Video in Istanbul as finance director before moving to Mobil Oil.
he worked for BP for 23 years, leading its downstream division – which includes refining, retail and petrochemicals – until 2020. erginbilgic quit
BP after missing out on the top job to Bernard Looney.
he is now a partner at private equity firm Global Infrastructure Partners.
erginbilgic is due to start in January and will be paid a base salary of £1.25m, of which 30pc will be deferred share awards.
That compares with east’s base salary last year of £925,000 – though bonuses bumped the total up to £3.95m.
The company said erginbilgic will be compensated for missing out on rewards he could have expected at his private equity employer with two tranches of rolls-royce shares each worth £3.75m – which will vest in 2027 and 2028.
Full details will be disclosed in the annual report next year.
erginbilgic will review his board roles at vehicle maker Iveco, as well as energy and healthcare group DCC and Turkish energy company Turkiye Petrol rafinerileri.
he said: ‘I am honoured to be joining rolls-royce at a time of significant commercial opportunity and strategic evolution as its customers embrace the energy transition.’
rolls-royce chairman Anita Frew said the new boss was a ‘ proven leader of winning teams within complex multinational organisations’.
Analysts at Jefferies called the appointment ‘very solid’ despite erginbilgic’s lack of experience in the aerospace and defence sectors.
rolls-royce shares fell 4.6pc, or 4.3p, to 87.7p, dropping more than 60pc under east.