Bonus for Rolls-Royce chief slammed after profits fall

Rolls-Royce is facing mounting questions over a near-£1 million bonus handed to chief executive Warren East despite a profits slump last year.

Institute of Directors governance head Oliver Parry said Rolls’ board, led by chairman Ian Davis, needed to show “more common sense” after paying East a £916,000 bonus despite the engineer’s profits slumping 50% last year, as well as being hit with a big fraud squad fine.

“Pay needs to be linked to performance and performance has not been as strong as it should be,” he said.

Rolls faces an advisory vote on the pay package at its annual meeting on May 4. Ruth Cairnie, remuneration chair, said the committee had “consulted extensively” with investors.

Rolls said it “scaled back” pay last year by removing forex benefits and to reflect the profits fall.