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Rolls-Royce appoints new chairman Rolls-Royce appoints new chairman
(35 minutes later)
Rolls-Royce has appointed the former head of McKinsey as chairman, ending the eight-year tenure of Sir Simon Roberston.Rolls-Royce has appointed the former head of McKinsey as chairman, ending the eight-year tenure of Sir Simon Roberston.
Ian Davis, who held the posts of chairman and global managing director at the management consultancy and also as a non-executive director of BP and Johnson & Johnson, joins the board of the Derby-based manufacturer as a non-executive director in March and takes over from Robertson on 2 May. One of Davis's first tasks at Rolls-Royce could be steering the organisation through the kind of corporate quagmire that McKinsey is used to navigating, with the group facing the threat of a corruption probe on both sides of the Atlantic. Ian Davis, who held the posts of chairman and global managing director at the management consultancy and also as a non-executive director of BP and Johnson & Johnson, joins the board of the Derby-based manufacturer as a non-executive director in March and takes over from Robertson on 2 May.
Rolls-Royce has handed an internal investigation into allegations of corruption in Asian markets to the Serious Fraud Office, which has yet to decide whether to launch a formal probe. The US Department of Justice has also been made aware of the allegations, which include claims from a former Rolls-Royce employee that Tommy Suharto, the son of the former Indonesian president, was paid $20m (£12m) by Rolls-Royce and given a Rolls-Royce car to persuade the Garuda airline to procure Trent 700 engines. One of Davis's first tasks at Rolls-Royce could be steering the organisation through the kind of corporate quagmire McKinsey is used to navigating, with the group facing the threat of a corruption inquiry on both sides of the Atlantic.
Davis's appointment was announced alongside full-year results that showed an increase in underlying pre-tax profits by nearly a quarter to £1.4bn, on underlying revenues – accounting for exchange rate fluctuations – that rose 8% to £12.2bn. Rolls-Royce's main earner is the manufacturing and servicing of civil aircraft engines such as the Trent 900 that powers the A380 superjumbo. The Rolls-Royce statement gave no update on the SFO situation, reiterating that an outcome of the process "could include the prosecution of individuals and of the company." Rolls-Royce recently appointed Lord Gold, who is investing cash-for-access allegations within the Conservative Party, to review its anti-corruption procedures. Rolls-Royce has handed an internal investigation into allegations of corruption in Asian markets to the Serious Fraud Office (SFO), which has yet to decide whether to launch a formal inquiry.
Davis said: "I am looking forward greatly to joining Rolls-Royce. Sir Simon has led the Board with distinction during the past eight years. I am extremely excited by the prospect of building on the firm foundations that have been laid". Rolls-Royce said on Thursday that its order book has grown by 4% to more than £60bn. The US Department of Justice has also been made aware of the allegations, which include claims from a former Rolls-Royce employee that Tommy Suharto, the son of the former Indonesian president, was paid $20m (£12m) by Rolls-Royce and given a car to persuade the Garuda airline to procure Trent 700 engines.
Davis's appointment was announced alongside full-year results that showed an increase in underlying pre-tax profits by nearly a quarter to £1.4bn, on underlying revenues – accounting for exchange rate fluctuations – that rose 8% to £12.2bn.
Rolls-Royce's main earner is the manufacturing and servicing of civil aircraft engines such as the Trent 900 that powers the A380 superjumbo.
The Rolls-Royce statement gave no update on the SFO situation, reiterating that an outcome of the process "could include the prosecution of individuals and of the company".
The company recently appointed Lord Gold, who is investing cash-for-access allegations within the Conservative party, to review its anti-corruption procedures.
Davis said: "I am looking forward greatly to joining Rolls-Royce. Sir Simon has led the board with distinction during the past eight years. I am extremely excited by the prospect of building on the firm foundations that have been laid".
Rolls-Royce said on Thursday that its order book had grown by 4% to more than £60bn.