ROLLS-ROYCE'S LARGEST INVESTOR SPOKE FOR UPDATING THE COMPANY'S BOARD OF DIRECTORS

 

Jonathan Eng, director of a California-based company that manages assets worth about $47 billion expressed this opinion.

Rolls-Royce's largest investor, the American investment company Causeway Capital Management, has called for the renewal of the board of directors of the British company, emerging from the worst recessions in the airline's history industry. The Financial Times reported this on Monday.

That was the opinion of Jonathan Ang, director of a California-based company that manages approximately $47 billion in assets. “I really think [Rolls-Royce's] board needs fresh thinking. The company is facing some challenges,” Ang told the British business publication. According to him, the current council is "good for what it was," but now is the time to revise its structure.

"I will ask [Anita Frew] if we have the right people right now to ask questions when unpleasant situations arise because they will arise," he said.

Frew is the first woman to serve as Rolls-Royce chair of the Management Board in the company's history, and she will take office on October 1, replacing retiring Ian Davis.

Eng also said he would like the British to consider their power grid prospects over the next three years. "In one blow, they can become an aerospace and defense company and can solve the balance problem," added Eng.

Rolls-Royce said it regularly reviews the "performance, composition and skill set" of the board, using "peer review and benchmarking," and "robust succession planning."

Rolls-Royce difficulties

The crisis in connection with the coronavirus pandemic has led to a sharp drop in production at Rolls-Royce plants. The company announced the first shutdown of its aircraft engine factories in its history because of the decline in the number of world air travel. Last October, Rolls-Royce reported record losses in the first half of 2020 - 5.4 billion pounds (over $7.4 billion) before taxes.

The company also plans to cut at least 9 thousand jobs worldwide, over 15% of the total number of employees, in order to adapt to the new realities of the aviation market in the period after the pandemic and save 1.3 billion pounds ($1.8 billion) annually.)