Tufan Erginbilgic’s pay packet was £4.1m last year, according to Rolls-Royce’s annual report, down from £13.6m in 2023
Rolls-Royce chief, Tufan Erginbilgic, received £10m less in 2024, despite steering the engine manufacturer through a financial revival.
According to Rolls-Royce’s annual report, Mr Erginbilgic’s remuneration was £4.1m last year, a significant drop from £13.6m in 2023. The majority of this decrease resulted from a £7.5m share package he received upon joining Rolls-Royce in 2023, as compensation for leaving his prior role in private equity.
However, the CEO also witnessed his annual incentive plan payments almost halve, to £2.5m. This reduction occurred as Rolls-Royce sales rose in 2024, and the FTSE 100 company recently upgraded its profit forecast for this year and announced plans to repurchase approximately £1bn of stock from investors.
This buyback marks the first in a decade for Rolls-Royce, a leading manufacturer of engines for commercial aircraft. The firm is also one of the UK’s largest military suppliers, producing engines and power systems for a large portion of the military.
These results signify a notable turnaround for the British manufacturing titan, which had endured a challenging few years following the pandemic. The company was compelled to secure emergency funding when the aviation industry came to a standstill during Covid-19 lockdowns.
Mr Erginbilgic joined in early 2023 and has since streamlined the company, including eliminating 2,500 jobs from its roughly 50,000-strong workforce. He has also addressed ongoing supply chain issues that have impacted Rolls-Royce’s financial performance in recent years.
Shares in Rolls-Royce soared by 15% after the company unveiled its February results, igniting investor confidence. In the wake of this financial update, the pay committee chairman for Rolls-Royce, Lord Jitesh Gadhia, gave a nod to the “impressive progress” made over the course of the year.
Although there was a significant drop in his total compensation package, CEO Mr Erginbilgic’s base salary saw a roughly 30% increase, taking it up to £1.1 million. Representatives from Rolls-Royce were solicited for a response on the matter.
